Workspace solutions provider Dev Accelerator files RHP, to be third mainboard IPO launch on Sept 10

Dev Accelerator IPO

Gujarat-based workspace solutions provider Dev Accelerator has filed red herring prospectus with the Registrar of Companies, launching its maiden public issue for subscription next week on September 10. The offer will close on September 12.

This would be the third company to open a mainboard IPO on the same date after Urban Company, and Shringar House of Mangalsutra.

The anchor book, the part of QIB (qualified institutional investors) portion, will be open on September 9. The IPO share allotment will be finalised by September 15, and Dev shares will be available for trading on the BSE & NSE effective September 17.

The IPO comprises of entirely fresh issue 2.35 crore equity shares, including reservation of up to 1,64,500 equity shares for its employees, and 3,29,000 shares for shareholders.

Hence, the entire IPO proceeds will be utilised by the company. Rs 73.1 crore of the fresh issue funds will be spent for fit-outs in the proposed centers, and Rs 35 crore will be used for repayment of certain borrowings including redemption of non-convertible debentures (NCDs). The remainder funds will be set aside for general corporate purposes.

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Dev Accelerator said its aggregate outstanding borrowings, as of May 2025, were Rs 127.6 crore on a consolidated basis.

Dev Accelerator, as of May 2025, has operations across 11 cities, including Ahmedabad, Mumbai, Noida, Pune, Hyderabad, Jaipur, and Rajkot with a total area under management of SBA (Small Business Administration) of 8,60,522 square feet, aiming to establish eight new centers.

"The eight new centers will be under the straight-lease model and furnished by landlords model, having a total estimated SBA of 9,40,961 square feet over the next 2 fiscals in India and abroad," the company in its RHP dated September 2 said.

Out of these 8 new centers, 4 with estimated SBA of 6,64,692 square feet are proposed to be set-up from the net proceeds of the Issue, under the straight-lease model, it added.

Incorporated in 2020, Dev Accelerator competes with listed entities like Awfis Space Solutions, Smartworks Coworking Spaces, and Indiqube Spaces, which are far bigger than the company as the company ended fiscal 2025 with revenue at Rs 159 crore, while competitors recorded topline in the range of Rs 1,000-1,200 crore in the same year.

Profit in the financial year ended March 2025 stood at Rs 1.7 crore, growing sharply by 303 percent from Rs 0.43 crore in the previous fiscal largely due to higher other income which soared to Rs 19 crore, up from Rs 2.6 crore in the same period.

Revenue during the year FY25 grew by 47 percent to Rs 158.9 crore, compared to Rs 108 crore in the previous year.

Pantomath Capital is acting as the sole merchant banker for the Dev Accelerator IPO.