Wakefit IPO Day 3: Grey-Market Premium Up ₹36, But Subscription Still Subdued — What’s It Telling Investors?

  • As of early December 2025, the Wakefit IPO is being quoted at a ₹36 premium (GMP: Grey Market Premium) in the grey-market — suggesting that some expect listing gains.
  • However, the formal IPO subscription — after two days of bidding — remains low: the issue is subscribed only 0.39 times overall. Retail portion is somewhat stronger (~1.77×), but Qualified Institutional Investors (NIIs) and institutions remain lukewarm.
  • The IPO aims to raise about ₹1,288.89 crore — a mix of fresh shares and offer-for-sale (OFS). The IPO price band is ₹185–195/share.
  • Several brokerages — including in their IPO-review notes — still recommend ‘Subscribe’ for Wakefit for medium- to long-term investors. Their view: Wakefit’s business model (home & furnishing, mattresses, integrated supply-chain + expansion plan) has potential, even though near-term interest (as seen in subscription numbers) is tepid.

🔎 What GMP + Subscription Data Suggest — And What to Be Cautious About

What looks positive:

  • A positive GMP (₹36) suggests that in the grey market there is some appetite for listing gains: some investors are willing to pay above the IPO price ahead of listing. Grey-market premium is often used as a rough, early indicator of listing sentiment.
  • Brokerages’ optimism indicates that for a long-term investor — who believes in Wakefit’s growth story — the IPO could still be a reasonable bet (assuming execution & demand environment hold up).

What’s worrying / risky:

  • The low subscription ratio (0.39×) after 2 days suggests weak institutional and non-retail demand so far — a signal that many larger investors are either sceptical or prefer to wait/observe. Oversubscribed IPOs tend to see better listing pops (because of oversub demand + limited supply).
  • GMP is unofficial & unregulated — grey-market trades are informal and don’t guarantee listing performance. A high GMP doesn’t always translate to strong listing gains, especially if demand drops or market sentiment changes.
  • For those looking for quick listing gains — the weak subscription is a red flag; strong listing gains often come when demand far outstrips supply. The market seems ambivalent about Wakefit — good for cautious or long-term investors, less so for aggressive short-term traders.

🧑‍💼 My Take / What Investors Should Do

  • If you are a long-term investor and believe in Wakefit’s business model (home & furnishing demand, brand potential, expansion), the IPO might be reasonably priced — but treat this as a mid/long-term bet, not a sure shot for quick profits.
  • If you are a short-term trader looking for a listing-day gain — the weak subscription suggests caution: listing gains may be modest, or the stock could even open flat or below expectations.
  • For risk-averse investors, it might make sense to wait — maybe see the listing price, check how the stock trades for few weeks, and then decide. Relying only on GMP and hype can be misleading.

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