Wakefit shares slipped 9% below the listing price on debut day. Is this a dip buying opportunity?

Shares of Wakefit Innovations tumbled 9.2% in early trade on the NSE, falling to Rs. It hit a one-day low of 177. The shares traded on the NSE at Rs. 195 at the issue price, while on the BSE it was marginally lower at Rs. was listed at 194.1.

In a post-listing commentary, Shivani Nyati, head of wealth at Swastik Investsmart, noted that Wakefit Innovations “debuted in a quiet stock market, listing at Rs 195 on the NSE, in line with its IPO price, while opening marginally lower at Rs 194.10 on the BSE.”

She added that the “muted listing reflects moderate investor demand,” citing the 2.52x overall subscription as a reflection.

Wakefit, which operates as a direct-to-consumer (D2C) home and furnishings brand, has a growing presence in mattresses, furniture and home solutions. The company is moving into omnichannel retail with plans to open more than 100 new offline stores.

However, Nyati pointed out certain challenges in the market. “Limited listing gains were expected due to competitive intensity in the D2C space, margin pressure and the need to demonstrate continued profitability at scale,” she said.

Looking ahead, investors may need to exercise caution. “Given the listing benefits and lack of near-term catalysts, investors may consider exiting the stock, especially if prices do not rise above the issue price,” advised Nyati. She added that “risk-averse investors are advised to book capital and avoid holding,” while traders “may place a tight stop-loss near Rs 180 if holding for short-term.”

IPO, Rs. 377.18 crore fresh issue and by existing shareholders Rs. 911.71 crore, including an offer for sale, which closed on December 10 with an aggregate subscription of 2.52 times. Retail investors bid 3.17 times and qualified institutional buyers (QIB) subscribed 3.04 times, while non-institutional investors (NIIs) responded at a relatively low 1.05 times.

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Proceeds from the fresh issue of the IPO are earmarked for store expansion, lease payments for existing outlets, equipment purchases and brand-building initiatives.

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