Awfis Space Solutions Ltd IPO: Co-working space operator Awfis Space Solutions Ltd's Initial Public Offering (IPO) will open for subscription on Wednesday i.e May 22. The company aims to raise Rs 599 crore. Awfis has fixed a price band of Rs 364-383 per share for its public offering, which will close on May 27.
Awfis Space Solution Issue Size
The proposed initial public offering (IPO) is a combination of fresh issue shares worth Rs 128 crore and an offer for sale (OFS) of 1.23 crore shares worth Rs 471 crore at the upper end of the price band. The whole IPO size is thus Rs 599 crore. Promoter Peak XV Partners Investments V (formerly known as SCI Investments) as well as shareholders Bisque Ltd. and Link Investment Trust will sell their shares via the OFS.
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Peak XV possesses a 22.86 percent stake in Awfis, whereas Bisque and Link Investment Trust possess a 23.47 percent and 0.36 percent stake, respectively, in the firm. Proceeds from the fresh issue will be used to fund capital expenditure for establishing new centers, meeting working capital needs, and general corporate purposes.
What does Awfis Space Solution Do
Awfis provides adaptable workspace solutions, ranging from individual flexible desk requirements to tailored office spaces for businesses. According to the Red Herring Prospectus (RHP), as of December 2022, Awfis had 169 centers in 16 cities with a total of 1,05,258 seats and a total rentable area of 5.33 million square feet. Out of these, 31 centers and 25,312 seats were under fit-out with a rentable area of 1.23 million square feet.
"In addition, we have entered into signed letters of intent (LOI) with space owners for 13 additional centers, with 10,859 seats aggregating to 0.55 million square feet. As of December 31, 2023, we have over 2,295 clients and have a presence in 52 micro markets in India," the RHP said.
In terms of financial performance, the IPO document stated that Awfis recorded a net loss of Rs 18.94 crore and revenue of Rs 616.49 crore during the April-December period of 2022-23. Awfis's net loss for the fiscal year 2022-23 was Rs 46.63 crore on a turnover of Rs 545.28 crore.
"We have incurred losses for Fiscals 2021, 2022, and 2023 and nine months ended December 31, 2023, as a result of, among others, increases in our depreciation and amortisation expense, employee benefits expenses, and finance costs," the RHP said.
Awfis Space IPO lot size
In the public offering, 75% of the issue size has been reserved for qualified institutional bidders (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors. Investors can bid for a minimum of 39 equity shares and in multiples of 39 equity shares thereafter.
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(With PTI's Inut)