Wakefit IPO GMP Crashes to ₹5 on Day 2 Amid 15 % Subscription: What’s Going On — and Should You Still Apply?
Grey-market premium (GMP) for Wakefit Innovations IPO has dropped to ₹5 on Day 2, even as overall subscription remains weak — a warning sign that may make investors think twice before applying ahead of the December 10 close.
Key Takeaways
- Wakefit’s IPO subscription on Day 2 stands at ~30 %; overall interest remains modest.
- Grey-market sentiment has cooled sharply — GMP is now ₹5 vs earlier ₹16–₹36, implying a listing price around ₹200, barely above issue price.
- IPO price band fixed at ₹185–195; listing is tentatively scheduled for December 15, 2025.
- Underlying concerns: profitability remains volatile, growth depends heavily on retail demand in a competitive home-furnishings market.
What’s Behind the GMP Crash and Tepid Subscription
Pricing & Subscription Snapshot
| Detail | Data / Update |
|---|---|
| Price band | ₹185–195 per share |
| Minimum application (Retail) | 76 shares ≈ ₹14,820 at upper band price |
| Day 1 subscription | ~11–15% overall, retail somewhat stronger |
| Day 2 subscription | ~29–30% overall (as of mid-day) |
| GMP (Grey Market Premium) | Fell to ₹5 — implying listing ~₹200 |
What This Signals
- Investor enthusiasm cooled fast. From early optimism (GMP ~₹16–₹36) to just ₹5 suggests speculative fervor is waning.
- Subscription remains weak. Until institutions (QIB/NII) show strong bids, meaningful listing-day gains appear unlikely.
- Listing may be flat. A ₹200 listing (versus ₹195 issue price) offers minimal upside after factoring in brokerage, taxes, and lock-in risks.
Why Wakefit’s IPO Is Getting Cold Feet
Business-Model & Profitability Risks
- Wakefit sells mattresses, furniture, and home décor — a segment with competition and sensitivity to consumer spending cycles.
- Though revenue grew in FY25, net profits remain volatile. Recent margins tightening and marketing/expansion costs raise doubts over sustainability.
- Institutional investors seem skeptical — QIB demand is negligible as of Day 2.
Market Sentiment & Listing Expectations
- The sharp decline in GMP suggests early grey-market participants are offloading, possibly expecting weak listing performance.
- IPOs with strong brand recall or high-growth potential often command grey-market premia; weak GMP here could reflect risk perception around Wakefit’s business context.
What It Means for You If You’re Considering Applying
You can apply — but treat this IPO more like a speculative stab than a safe bet.
- Expect modest listing upside at best — ₹200 or so, not big jump.
- Only apply if you’re comfortable with longer-term hold, believing Wakefit can turn around profitability.
- If you’re looking for quick listing gains, this likely isn’t one. The risk–reward doesn’t favor strong short-term returns.
Timeline & What to Watch Next
- IPO bidding closes: December 10, 2025
- Allotment likely: December 11, 2025
- Tentative listing date: December 15, 2025 (BSE & NSE)
- Key triggers: actual subscription numbers across investor categories, any pre-listing institutional interest, market mood around consumer-furnishing sector
Frequently Asked Questions (FAQ)
A: GMP is unofficial. ₹5 over issue price suggests grey-market expects listing near ₹200 (for issue price ₹195). Not a guarantee — actual listing could differ significantly.
A: It’s better than Day 1, but still modest. Retail and NII participation matters; if QIB demand stays weak, allotments may be small or skewed.
A: Only if you believe in Wakefit’s business model — brand strength, growth in India’s home-furnishing demand, and hope for margin improvement. For short-term listing gains, the odds look weak.
