Awfis IPO: Rs 600 cr-IPO to Hit Market on Wednesday

New Delhi, May 21 (PTI) Co-working space operator Awfis Space Solutions Ltd will hit the capital market on Wednesday with its initial public offer (IPO) to raise to Rs 599 crore.

The company has fixed a price band of Rs 364-383 per share for its maiden public issue, which will open on May 22 and conclude on May 27.

The proposed initial public offering (IPO) is a combination of fresh issue shares to the tune of 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. This takes the total IPO size to 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 offload shares through the OFS.

Peak XV holds a 22.86 per cent stake in Awfis, while Bisque and Link Investment Trust own 23.47 per cent and 0.36 per cent stake, respectively, in the company.

Proceeds from the fresh issue will be used in funding capital expenditure towards setting up new centres, supporting working capital requirements, and general corporate purposes.

Awfis provides flexible workspace solutions, ranging from individual flexible desk needs to customised office spaces for corporates.

According to the Red Herring Prospectus (RHP), Awfis had 169 centres across 16 cities with 1,05,258 total seats and a total chargeable area of 5.33 million square feet at the end of December 2023. Out of these, 31 centres and 25,312 seats were under fit-out with chargeable area aggregating to 1.23 million sq. ft.

"In addition, we have entered into signed letters of intent (LOI) with space
owners for 13 additional centres, 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.

On financial performance, the IPO document stated that Awfis posted a net loss of Rs 18.94 crore and a revenue of Rs 616.49 crore during the April-December period of 2023-24.

In the full 2022-23 fiscal year, Awfis net loss stood at Rs 46.63 crore on a turnover of 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.

In the public issue, 75 per cent of the issue size has been reserved for qualified institutional bidders (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Investors can bid for a minimum of 39 equity shares and in multiples of 39 equity shares thereafter.