Flexible workspace solutions provider Awfis Space Solutions on Thursday set price band of Rs 364-383 per share for its initial public offering (IPO). It is scheduled for launch on May 22. At the price band of Rs 364-383 per share, the total proceeds from the IPO would be between Rs 576 crore and Rs 599 crore.
Awfis is the first Indian coworking services provider which is launching its IPO.
The company's expansion into tier 1 and tier 2 cities, coupled with increasing demand from large enterprises and startups, is expected to drive future growth. Despite operating at a loss, Awfis reported significant operating revenue for the nine months through December 2023 and recorded a narrowed net loss for the fiscal year ended 31 March, 2023.
The company's positive cash flow and earnings before interest and tax (EBIT) level, emphasising its solid financial position. Through the IPO, Awfis aims to raise Rs 128 crore in fresh capital, with additional shares offered for sale by Peak XV Partners, ChrysCapital and Link Investment Trust. Notably, Peak XV Partners and ChrysCapital are projected to maintain substantial stakes in the company post-IPO.
Awfis differentiates itself in the coworking space market by leveraging a supply strategy that involves managed aggregation in partnership with landlords, thereby mitigating capital-intensive investments. The shift in work dynamics following the Covid-19 pandemic has favored Awfis, with Indian companies encouraging employees to return to offices, leading to increased demand for coworking spaces. Furthermore, a significant proportion of this demand now originates from large enterprises, marking a notable shift from the pre-pandemic period.
Furthermore, Awfis plans to expand its presence in key tier 2 cities such as Guwahati, Vijayawada and Lucknow, solidifying its footprint in 19 markets. As of December 31, the company operated in 16 cities, hosting 138 centers and covering a chargeable area of 4.10 million sq ft. While the company focuses on domestic expansion, there are currently no plans for international expansion.
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