The market lot is 76 shares and the pre-IPO market capitalisation stands at about Rs 6,373.16 crore. Wakefit will record on the BSE and NSE if the provide proceeds as scheduled.
Wakefit presents a well-known D2C story: speedy top-line development pushed by on-line distribution, an increasing product vary that now covers mattresses, furnishings and residential décor, and plans to scale offline through company-owned expertise shops.
The corporate reported whole earnings of Rs 1,305.43 crore in FY25 however stays loss-making, reporting a web lack of Rs 35.00 crore for the 12 months. EBITDA margin in FY25 was in low single digits at 6.96% and the agency continues to point out unfavourable EPS.
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Swastika Investmart flagged a variety of weaknesses for the IPO. Regardless of rising gross sales, profitability has not adopted. Working leverage stays restricted whereas advertising and distribution prices are excessive. The notice stated the corporate continues to report losses, and FY25 web loss stays excessive regardless of income development with an Keep away from ranking. Wakefit additionally has unfavourable return metrics and a stretched pricing relative to profitability.
There are additionally structural dangers that traders ought to weigh. Wakefit depends closely on on-line channels and third-party manufacturing, which might expose it to provide or platform disruptions. Uncooked materials value swings and the working-capital depth of furnishings gross sales are cited as threats to margin stability.
On the flip aspect, the corporate’s strengths embody a robust model recall in mattresses, a large product suite, and data-driven product improvement that has supported repeat purchases.
Buyers contemplating the IPO ought to reconcile the upbeat market buzz — evident within the 19% GMP — with some warning. Development and model momentum are actual, however translating that into regular earnings would require execution on manufacturing scale, tighter working-capital cycles and sustained working leverage.
Functions shut for bidding on December 10.
(Disclaimer: Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t characterize the views of Financial Occasions)
