Wakefit IPO promises huge windfalls for founders and early backer Peak XV

Omnichannel furniture retailer Wakefit is set to launch its Rs 1,288-crore IPO on Monday (December 8), delivering stellar gains for its promoters and early investors.

The company has set the price band at Rs 185 to Rs 195 per equity share. This values Wakefit at $669 million at the upper end of the price band.

Ankit Garg, Co-founder, CEO and Chairperson at Wakefit, holds a stake of 33.03%, which translates to a holding of Rs 2,012 crore. Garg plans to offload 77 lakh equity shares in the offering, acquired at a weighted average price of Rs 0.02 per share, allowing him to take home Rs 150 crore.

Chaitanya Ramalingegowda. Co-founder Promoter and Executive Director, currently holds a stake of 9.98%, taking the value of his holdings to Rs 608 crore. He is expected to offload 44 lakh shares, acquired at a weighted average price of Rs 0.04, allowing him to take home Rs 86.8 crore.

Early backer Peak XV's 22.47% stake in the company is valued at Rs 1,368 crore at the upper end of the price band. The VC major, the largest selling shareholder in the prospectus, plans to offload 20.3 crore shares, taking home Rs 397.3 crore, a whopping 850% growth from its initial investment.

This would mark the fourth IPO exit for Peak XV in the last two months. It took home big windfall gains from Groww and Pine Labs and is waiting for Meesho's IPO to close during the week.

Verlinvest, the second largest institutional investor on the cap table, holds a 9.79% stake in the company. It is currently valued at Rs 596 crore, a 2.3x return. It plans to offload 1.01 crore share in the IPO, taking home Rs 198.7 crore.

Wakefit's IPO consists of a fresh issue of Rs 377 crore and an offer-for-sale of 4.67 crore shares. The IPO is set to open for bidding on Monday (December 8) with bidding closing on Wednesday (December 10).