Wakefit Sees Muted IPO Response, Corona Remedies Issue Booked 9x So Far

The Initial Public Offering (IPO) of the Bengaluru-based Wakefit Innovations Limited's share sale experienced 0.36 times subscription end of day 2. The company received applications for 1,31,66,240 against 3,63,53,277 shares being offered. Retail subscription stood at 1.69 times, and NIIs subscription was 0.20 times.

Wakefit began in 2016 with founders Ankit Garg and Chaitanya Ramalingegowda wanting to help Indians sleep better through affordable, maker-to-customer mattresses. Today, it is generating over INR 1,270 crore in annual revenue and selling across 700 districts. The company is now heading to the public markets with an INR 1,289-crore IPO, including an INR 377-crore fresh issue and a sizeable offer for sale by founders and Peak XV Partners.

Wakefit sells mattresses, furniture, and home essentials, all three categories now above ₹100 crore in annual revenue. Mattresses form 61 per cent of its business, followed by furniture at 28 per cent. According to the company, its omnichannel model is key, with 65 per cent of sales coming from its website and company-owned stores, while the rest flows through marketplaces like Amazon and Flipkart.

The company's revenue has grown rapidly, from INR 812 crore in FY23 to INR 1,273 crore in FY25, nearly 25 per cent CAGR. Profits lag, however, after losses of INR 145 crore in FY23 and INR 35 crore in FY25, Wakefit posted an INR 35-crore profit in the first half of FY26. Whether this turnaround can hold is unclear.

A major drag is its aggressive retail expansion. COCO (Company-Owned Company-Operated) stores increased from 23 in FY23 to 105 in FY25, pushing depreciation up 50 per cent due to lease accounting rules. With half the IPO money going into more stores, profitability may stay under pressure.

ICICI Direct said Wakefit, being present in the domestic home & furnishing industry, is largely dominated by unorganised players with ~70 per cent market share.

"We do not expect its investment plans to expand D2C presence through new store additions and marketing investments to immediately provide a clear edge in competing with unorganised players," said ICICI Direct, assigning an "Avoid" rating.

JM Financials noted that Wakefit's position as a leading D2C home brand with strong growth and a vertically integrated, full‑stack model as its strengths, while citing volatile profits, high dependence on mattresses, and "intense competition" to be its key risks. At the upper price band, Wakefit seeks a valuation of INR 6,300 crore - implying a rich 40–50x forward P/E.

Corona Remedies IPO

The Ahmedabad-based CORONA Remedies has launched its own IPO, with the issue booked 9.2 times so far, and GMP signals 24 per cent listing gains with strong interest from retail investors and NIIs.

CORONA Remedies started as a branded pharmaceutical formulations company catering to therapeutic areas like women's healthcare, cardio-dabetics, pain management, urology and more. Over recent years, it has scaled by building a brand portfolio of 70+ products, with 27 "engine brands" contributing more than 70 per cent of its domestic sales.

In 2025, CORONA reported a revenue of close to INR 1,196 crore and a net profit of ~INR 149.4 crore, marking a sharp improvement over preceding years and showing healthy profitability.

Earlier in 2025, the company made a significant expansion move by acquiring seven pharma brands from Bayer India. These include a cardiology brand and multiple healthcare brands, a move that deepens CORONA's presence in anti-platelet therapy, hormone therapies, and women's health segments.

The IPO, sized at INR 655.37 crore, priced at INR1,008–1,062 per share, is structured entirely as an offer-for-sale (OFS), meaning existing shareholders are selling shares and CORONA itself won't receive fresh capital from the public issue. Anchor investors have already committed INR 195 crore, signalling institutional confidence ahead of the public subscription.

At the upper price band, the implied valuation is roughly INR 6,500 crore. Based on FY25 numbers, this places the P/E ratio in the mid-40s, a premium, but broadly in line with valuations in the mid-sized Indian pharma sector.

Anand Rathi Financial Services described the IPO's strengths, "The company operates across women's healthcare, cardio-diabetes, pain management, urology, gastrointestinal, respiratory, and VMN (vitamins–minerals–nutrition). This branching reduces dependency on any single therapy and widens revenue opportunities.

JM Financials, in its IPO, noted the key risks for this IPO: intense competition in the pharma industry, regulatory risks, raw material price volatility, and dependency on third-party manufacturing and distribution.