TBO Tek, Awfis Space get SEBI’s approval to launch IPOs

Co-working space startup Awfis Space Solutions and TBO Tek, a travel distribution platform, have received markets regulator SEBI’s approval to raise funds through the initial public offering (IPO) route. While TBO Tek filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) in November last year, Delhi-based Awfis Space submitted its IPO papers with the regulator in December 2023.

As per the document filed with the SEBI, the IPO of Awfis, a provider of a tech-enabled workspace solutions platform, comprises a fresh issue of up to ₹160 crore and an offer for sale (OFS) of equity shares of up to 10,023,172 by existing shareholders.

On the other hand, online travel platform TBO Tek looks to raise ₹400 crore by issuance of fresh equities and OFS of 1.56 crore equity shares by promoters and investors.

Awfis proposes to utilise the net proceeds from the fresh equities for funding capital expenditure for the establishment of new centres, funding for the working capital requirements, and general corporate purposes.

ICICI Securities Limited, Axis Capital Limited, IIFL Securities, Emkay Global Financial Services Limited are the Book Running Lead Managers to the issue.

Meanwhile, TBO Tek proposes to utilise the net proceeds from the fresh issue for growth and strengthening of the platform by adding new buyers and suppliers, unidentified inorganic acquisitions, and general corporate purposes. Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited and JM Financial Limited.

As per the DRHP filed with the SEBI, Awfis Space Solutions is India's largest flexible workspace solutions company, based on the total number of centres, according to a CBRE report mentioned in the offer document. It offers a comprehensive range of flexible workspace solutions, catering to diverse needs, from individual flexible desk requirements to customised office spaces for startups, SMEs, and large corporations.

The company is among the top 5 benchmarked players in the flexible workspace segment and has presence in 16 cities across India. With 136 total centers in 16 cities, Awfis provides total of 81,433 seats, covering a chargeable area of 4.12 million square feet. Among these, 15 centers with 11,191 seats are currently under fit-out, with a chargeable area aggregating to 0.53 million sq. ft, as per CBRE Report.

Founded in 2006, TBO Tek is one of the leading players in the global travel and tourism industry, providing services to buyers and suppliers in over 100 countries (as of June 30, 2023) with a comprehensive travel inventory.

TBO platform connects over 147,000 buyers across more than 100 countries with over one million suppliers, as of June 30, 2023, offering 7,500+ destinations and facilitates 33,000 bookings per day through their platform. The platform allows the large and fragmented base of suppliers to display and market inventory to, and set prices for, the large and fragmented global buyer base. For buyers, the platform is an integrated, multi-currency and multi-lingual one-stop solution that helps them discover and book travel for destinations worldwide, across various travel segments such as leisure, corporate and religious travel.

TBO operates in the global travel and tourism market that stood at $1.7 trillion in 2017. In 2023 the travel and tourism industry is estimated to recover at pace, growing 18.2% year-on-year from 2022 to reach $1.9 trillion, and expected to grow at a CAGR of 8.2% to reach $2.6 trillion in 2027.