Awfis IPO to open on May 22; price band at ₹364-383 apiece

Delhi-based Awfis Space Solutions, a co-working space company, has set the price band for its upcoming initial public offering (IPO) in the range of ₹364-383 per equity share of a face value of ₹10. The workspace solution provider looks to raise ₹599 crore at the upper end of the IPO price band.

The three-day IPO of Awfis will open on May 22, while allocation to anchor investors is scheduled to take place on May 21. The allotment of shares to applicants is expected to be finalised on May 28, while the tentative date for listing of the shares on the BSE and NSE is May 30, 2024.

The lot size is 39 equity shares and in multiples thereafter, which means the minimum amount for retail investment is ₹14,937.  

As per the revised document filed with the SEBI, the company has reserved 75% of the issue for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.

The IPO of Awfis Space Solutions comprises a fresh issue of 0.33 crore shares worth ₹128 crore and an offer for sale (OFS) of 1.23 crore shares aggregating to ₹470.93 crore by existing shareholders. Under the OFS, Peak XV Partners Investments V (formerly known as SCI Investments V) will sell up to 6,615,586 equity shares; Bisque Ltd to offload up to 5,594,912 equity shares; and Link Investment Trust to sell up to 85,201 equity shares. 

Incorporated in December 2014, the co-working space startup provides a wide spectrum of flexible workspace solutions ranging from individual flexible desk needs to customised office spaces for startups, small and medium enterprises as well as for large corporates and multi-national corporations. The company intends to use capital raised from fresh issuance of equity shares for funding capital expenditure towards the establishment of new centres. A part of the fund will be also used to meet working capital requirements and general corporate purposes.

For the financial year 2023-24, Awfis posted net loss of ₹46.64 crore compared to loss of ₹57.16 crore in FY22 and ₹42.64 crore in FY21. The revenue, however, nearly doubled to ₹565.79 crore from ₹278.72 crore in FY22 and ₹216.02 crore in FY21. As of March 31, 2023, the total assets stood at ₹930.61 crore, while net worth was ₹169.36 crore.

As per CBRE Report mentioned in the RHP, Awfis was the largest flexible workspace solutions company in India as of June 30, 2023, with presence in 16 cities across the country, catering to 2,139 clients. It has 136 total centers with 81,433 total seats and total chargeable area of 4.12 million sq. ft., of which 15 centers and 11,191 seats are under fit-out with chargeable area aggregating to 0.53 million sq. ft. In addition, the company has entered into signed letters of intent with space owners for 14 additional centers, with 10,886 seats aggregating to 0.55 million sq. ft.