Awfis Space Solutions IPO: 10 things to know before subscribing to the Rs 598-cr issue

In the fiscal year ending March FY23, the New Delhi-headquartered company improved its net loss to Rs 46.64 crore from Rs 57.2 crore in the preceding year.

Awfis Space Solutions, a co-working space solution provider, is all set to launch its Rs 598.93 crore initial public offer (IPO). The public issue will open on May 22.

Here are all the other details you need to know.

1.) IPO Dates

The IPO will open for subscription on May 22, 2024 and close on May 27, 2024.

2.) Price Band

The price band for the issue has been fixed at Rs 364-383 per share.

3.) Offer Detail

The IPO is a mix of fresh issuance of shares worth Rs 128 crore and an offer-for-sale (OFS) of 1,22,95,699 equity shares by the existing shareholders including promoter Peak XV Partners Investments. Promoters - Amit Ramani holds an 18.19 percent stake on a fully diluted basis, while Peak XV Partners Investments V (the venture capital firm formerly known as Sequoia Capital India & SEA) owns 22.86 percent.

4.) Objectives of the Issue

Awfis Space Solutions plans to allocate Rs 42.03 crore from the net proceeds of its new offering towards setting up new centres. Another Rs 54.37 crore will be earmarked for meeting working capital needs, with the remainder being utilized for general corporate purposes.

5.) Lot Size

Investors can bid for a minimum of 39 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 14,196 (39 (lot size) x Rs 364 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,937.

6.) Company Profile

Established in 2014, it operates as a workspace solution provider within India. It delivers a diverse array of flexible workspace options to startups, small and medium-sized enterprises (SMEs) and large corporates. Additionally, Awfis Space Solutions Limited extends ancillary services including catering, IT assistance, infrastructure support, and event organization.

7.) Financials

In the fiscal year ending March FY23, the New Delhi-headquartered company recorded a net loss of Rs 46.64 crore, marking an improvement from the previous year's loss of Rs 57.2 crore. Meanwhile, revenue from operations surged by 112 percent compared to the prior year, reaching Rs 545.3 crore.

8.) Lead Managers

ICICI Securities Limited, Axis Capital Limited, Iifl Securities Ltd and Emkay Global Financial Services Ltd are the book-running lead managers of the Awfis Space Solutions IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

9.) Key Risks

i.) Awfis faces significant capital expenditure and working capital needs, potentially requiring further financing. Such a situation could adversely impact its financial performance, cash flows, and financial health.

ii.) Awfis does not own land and buildings at any of its centres. Should any issues arise regarding the title or ownership of the premises where its centres are situated, there's a risk of centre closures.

iii.) Operational risks are inherent in Awfis' business, given its focus on delivering services at high-quality standards across its centres. Failure to adequately manage these risks could adversely impact the company's business, operational results, cash flows, and financial condition.

10.) Listing Date

Awfis Space Solutions IPO will likely list on BSE and NSE with a tentative listing date fixed as Thursday, May 30, 2024.

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