Day: June 27, 2025

Wakefit Innovations Ltd, the home and furnishings brand known for its mattresses and sofas, has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) aiming to raise ₹468.2 crore. The move is designed to more than double the company’s offline presence as it scales up from a fast-growing direct-to-consumer business into an omnichannel retail brand.

According to the draft red herring prospectus, the IPO will include a fresh issue of shares as well as an offer for sale of up to 58.4 million shares by existing investors and founders.

Promoters and Investors Cashing In

As part of the offer for sale, Wakefit co-founders Ankit Garg and Chaitanya Ramalingegowda will offload 7.73 million and 4.45 million shares, respectively.

Major institutional investors are also participating in the sale, locking in substantial returns:

• Peak XV Partners is selling 25.06 million shares acquired at an average cost of ₹20.52 per share.
• Investcorp funds will offload a combined 6.18 million shares purchased at ₹85–88 each.
• Verlinvest S.A. plans to sell 10.19 million shares acquired for ₹82.67 apiece.

Other sellers include Paramark KB Fund I (3.06 million shares), SAI Global India Fund (830,000), individual shareholder Nitika Goel (720,000), and Redwood Trust (170,000).

Growth Story

Founded in 2016, Wakefit started by selling mattresses online before expanding into beds, sofas, and a range of home furnishings. The company distributes primarily through its own website and app but has also built a growing network of experience centres and company-owned stores.

Wakefit has raised multiple funding rounds between 2018 and 2023 from marquee investors including Sequoia Capital India (now Peak XV), Verlinvest, and Investcorp. In its latest round in January 2023, the company secured ₹320 crore led by Investcorp with participation from existing backers.

The company plans to raise an additional ₹93.6 crore in a pre-IPO funding round, the prospectus notes.

IPO Proceeds to Power Expansion

Wakefit plans to channel the IPO proceeds into aggressive growth initiatives:

• ₹82.1 crore to open 118 new outlets
• ₹145.2 crore for lease payments on existing stores
• ₹15.4 crore on store equipment
• ₹108.4 crore for advertising and brand-building

As of December 2024, Wakefit operated 98 outlets and is preparing to launch its first large-format “Jumbo Store” in Bengaluru.

Financial Snapshot

Wakefit is part of a wave of direct-to-consumer brands testing public markets, following Honasa Consumer (Mamaearth), with Lenskart, Licious, and boAt expected to launch IPOs soon.

In the first nine months of FY25, Wakefit reported revenue of ₹994.3 crore with a net loss of ₹8.8 crore. For FY24, total income stood at ₹1,017.3 crore—up from ₹820 crore in FY23—while the net loss narrowed significantly to ₹15.05 crore from ₹145.68 crore a year earlier.

Book Running Lead Managers

The IPO will be managed by Axis Capital, IIFL Securities, and Nomura as book-running lead managers.

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JSW Paints, part of the diversified JSW Group, has signed a definitive agreement to acquire up to 74.76% stake in Akzo Nobel India—maker of the iconic Dulux brand—in a transaction valued at ₹8,986 crore. This marks one of the largest deals in India’s nearly ₹90,000 crore paints industry and paves the way for Akzo Nobel’s complete exit from the country.

With this acquisition, JSW Paints, which entered the segment in 2019 and has yet to establish significant market share, will instantly become a formidable player in the decorative and industrial coatings space. The transaction is subject to regulatory approvals from the Competition Commission of India and a mandatory open offer to public shareholders.

In an exchange filing on June 27, Akzo Nobel India confirmed that the maximum consideration under the share purchase agreement would be up to ₹8,986 crore, subject to closing adjustments. The deal includes acquiring shares from the Dutch promoter entities Imperial Chemical Industries Ltd. and Akzo Nobel Coatings International BV.

This strategic move comes as Akzo Nobel NV, headquartered in Amsterdam, continues to reshape its global portfolio. Last October, the company announced a strategic review of its South Asia operations, exploring options such as partnerships, joint ventures, mergers, or divestments to focus more sharply on its core coatings business.

The acquisition has been years in the making, with several other bidders—including a consortium of Advent International and Indigo Paints, as well as Pidilite Industries—showing interest.

Upon completion, Akzo Nobel’s promoter group, which held nearly three-quarters of Akzo Nobel India, will exit the domestic market. This exit coincides with a period of heightened competition, as new entrants like Aditya Birla Group and Grasim’s Birla Opus are disrupting the paint landscape long dominated by Asian Paints, Berger Paints, Kansai Nerolac, and Akzo Nobel India itself.

A Strategic Leap for JSW Paints

For JSW, the acquisition accelerates its ambitions to scale up in one of India’s fastest-growing sectors. Parth Jindal, Managing Director of JSW Paints, noted:

“Paints and coatings is one of the fastest-growing sectors in India. Akzo Nobel India is home to some of the most globally renowned brands like Dulux, International, and Sikkens.”

Akzo Nobel CEO Greg Poux-Guillaume described the sale as a significant milestone in the company’s strategy:

“Akzo Nobel India has been a consistently strong performer, and we are proud of the brands and talent that have made it a success.”

A Strong Legacy

Akzo Nobel India operates across a wide spectrum—from decorative paints to automotive, industrial, marine, and powder coatings. In FY25, the company reported revenues of ₹4,091 crore.

Earlier this year, Akzo Nobel announced the transfer of its powder coatings business and its international research centre to its Dutch parent in an intergroup deal worth ₹2,143 crore. Additionally, it sold the intellectual property rights for its decorative paints business across India, Bangladesh, Bhutan, and Nepal for ₹1,152 crore.

A Changing Industry

India’s paint market has become increasingly dynamic over the past five to six years. New entrants include Pidilite (with Haisha Paints), Grasim (Birla Opus), Astral (through its acquisition of Gem Paints), and JK Cement (which entered by acquiring Acro Paints).

According to the Indian Paint Association, the country’s paints and coatings industry is valued at $8.5 billion and accounts for approximately 6.3 million tonnes in annual volume.

With this landmark acquisition, JSW Paints is poised to reshape the competitive landscape and accelerate its vision to become a leading force in India’s vibrant paint sector.

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India’s benchmark indices remained firmly in the green on June 27, poised to end the week with robust gains. Renewed buying in oil & gas, metals, and auto stocks fueled the rally, while easing geopolitical tensions after the Israel-Iran truce and optimism over a potential US-India trade deal provided key support. For the week, both the Nifty and Sensex advanced over 2%.

Broader markets continued to outperform. The Nifty Midcap 100 and Smallcap 100 indices extended their winning streak to a sixth consecutive session. The midcap index climbed more than 2% for the week, while smallcaps surged over 4%.

As of 3:10 pm, the Sensex was up 294.89 points (0.35%) at 84,050.76, and the Nifty gained 91.50 points (0.36%) to trade at 25,640.50. Market breadth was positive, with 1,920 stocks advancing, 1,589 declining, and 112 unchanged.

“It appears that the rally is unlikely to be impacted by the July 9th tariff deadline imposed by President Trump. Reports that the deadline could be extended are positive for sentiment,” said V K Vijayakumar of Geojit Financial Services. However, he noted that some near-term profit booking could occur.

Most NSE sectoral indices traded higher. Nifty Oil & Gas led the pack with a 1.28% gain, followed by Nifty Infrastructure (up 1.07%) and Energy (up 1%). PSU Bank, Pharma, Metal, and Media indices advanced between 0.4% and 0.7%. Nifty Bank and Private Bank rose modestly, while Auto and Midcap 100 also ended higher. The Nifty Smallcap 100 continued its strong run, climbing nearly 1%. On the downside, Nifty Realty fell 1.25%, and IT and Consumer Durables also edged lower. Market volatility further eased, with India VIX slipping 1.83% to 12.36.

Stocks in Focus

Several stocks were actively traded. Akzo Nobel India soared over 9% after JSW Paints announced a deal to acquire up to 74.76% stake from Akzo Nobel N.V. and affiliates for up to ₹8,986 crore, subject to closing adjustments.

Jio Financial Services gained more than 4% after SEBI granted Jio BlackRock Broking a certificate to operate as a stockbroker and clearing member.

IndusInd Bank rallied nearly 4% after reports on CNBC-TV18 suggested Axis Bank’s Rajiv Anand is a leading contender for the CEO role, alongside HDFC Bank’s Rahul Shukla and Bajaj Finance’s Anup Saha.

Technical Outlook

From a technical perspective, the momentum appears intact. Analysts now see the 25,700–25,800 zone as the next resistance area, while 25,000 remains strong tactical support. “With bullish sentiment intact, traders are eyeing further upside in the near term,” said Akshay Chinchalkar, Head of Research at Axis Securities.

Top Gainers and Losers

On the Nifty, the session’s top gainers included Jio Financial Services, IndusInd Bank, Adani Enterprises, Apollo Hospitals, and Asian Paints. Among the laggards were Trent, Tata Consumer Products, Dr. Reddy’s, Tech Mahindra, and Eternal.

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