Wakefit IPO to Generate Eceptional Return for Early Investors: Peak XV to Draw 10x Return

Wakefit, the home and sleep solutions company, has set its initial public offering (IPO) price band at ₹185-195 per share, valuing the company at approximately ₹6,400 crore ($719 million). Wakefit IPO aims to raise ₹377.2 crore through a fresh issue alongside the 4.68 crore equity shares set aside for the OFS.

Early Investors to Generate Solid Returns

As per the Red Herring Prospectus (RHP), Peak XV Partners (formerly Sequoia Capital India) stands to gain the most from the listing, potentially earning a 10X return on its decade-long investment in Wakefit. Redwood Trust is also poised for substantial gains, with returns expected to reach nearly 11X.

The scenario is considerably different for investors who joined in later rounds. Verlinvest, SAI Global, and Paramark KB are likely to see more limited upside, with returns hovering around 2X, reflecting the slower valuation growth in the company’s recent funding rounds.

Under the offer for sale (OFS), Peak XV plans to sell shares worth around ₹397 crore, followed by Verlinvest at ₹199 crore and Paramark KB at roughly ₹50 crore, assuming the upper end of the price band. Other investors, including SAI Global and Redwood Trust, are opting for partial exits, offering only a small portion of their holdings.

According to the RHP, Peak XV remains the largest external shareholder with a 22.47% stake, followed by Verlinvest (9.79%) and Investcorp (9.29%). SAI Global Investment holds 5.35%, while Elevation Capital and Paramark KB Fund own 4.68% and 1.63%, respectively. Among the promoters, Ankit Garg leads with a 33.03% stake, with Chaitanya Ramalingegowda holding 9.98%.

Wakefit Financial Performance

On the financial side, Wakefit reported operating revenue of ₹724 crore and a net profit of ₹35.57 crore in the 1H FY26. For FY25, the company recorded nearly 30% year-on-year growth, with revenue rising to ₹1,274 crore from ₹986 crore in FY24. However, despite strong top-line growth, the company posted a net loss of ₹35 crore for the fiscal year.

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