Awfis Space Solutions' shares made a modest start on its market debut on May 30, listing at over 13 percent over the IPO price on listing day. The listing gains missed grey market estimates, where shares were trading at about 22 percent premium over issue price. Analysts are mixed on this Ashish Kacholia-backed company.
Should you buy, sell, or hold Awfis Space Solutions stock post-listing? Here's how experts view the debutant stock.
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Narendra Solanki, Head Fundamental Research - Investment Services at Anand Rathi advises that some investor could take advantage of listing gains to book profits. From a long-term perspective, Solanki recommends investors to buy shares but cautions them to monitor the financial performance on a sequential basis and wait for a correction before taking a position in the stock.
In the fiscal year ending March FY23, the New Delhi-headquartered company reported a net loss of Rs 46.64 crore, an improvement from the previous year's loss of Rs 57.2 crore. Additionally, revenue from operations surged by 112 percent year-over-year, reaching Rs 545.3 crore.
Solanki believes that the total addressable market for flexible workspace operators represents a significant opportunity for Awfis, which is estimated at 282 million sq. ft. (in terms of area) and valued at 474-592 billion by CY26.
Shivani Nyati of Swastika Investmart suggests that investors should hold their position by keeping a stop loss at the issue price of Rs 383. "While not explosive, Awfis Space Solutions' listing presents a decent starting point. The strong subscription highlights the attractiveness of the co-working space market, but the company's financial situation requires ongoing monitoring," she said.
Prashanth Tapse of Mehta Equities says that even as it received an overwhelming response from all sets of investors, Awfis Space Solutions' listing fell below street expectations due to a selloff mood in the market ahead of the election outcome. The demand was driven by the company's unique position as a pioneer in the listing space, providing an early mover advantage to attract investors, which contributed to the listing gains. "Given the current market sentiment for the next 4-5 days, we recommend that allotted investors book 50 percent of their profits today and hold the remaining shares for the short term, with a target price of Rs 470-500 and a stop loss set at Rs 412," he added.
Over the course of four days, the Rs 598.93-crore public offer received an excellent investor response as the issue was subscribed 108.17 times.
A day before the issue opened on May 22, Awfis garnered Rs 268.8 crore through the anchor book. Marquee investors such as Ashoka Whiteoak ICAV, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon Life India, Axis Mutual Fund, UTI Mutual Fund, Canara Robeco Mutual Fund, Quant Mutual Fund, Invesco India, Motilal Oswal MF, Edelweiss, and Bandhan Mutual Fund.
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