EMP - Awfis Space Solutions Limited

About  Awfis Space Solutions Limited

 Incorporated in 2014, Awfis Space Solutions Limited is one of India’s largest flexible workspace solutions providers as of 31 December 2023. It offers flex workspaces, customized office spaces, mobility solutions of varied seat cohorts ranging from a single seat to multiple seats. The company offers these services to clients from start-ups, freelancers, small and medium enterprises(SMEs), large corporations and multinational corporations. Clients avail of these services on a contract basis for a period ranging from one hour to several years.

It operates on a managed aggregation (MA) model, procuring spaces from developers or owners. The owners incur capital expenditure during fit-out, and the rest of the expenses are managed by the operators, i.e, Awfis. Then it builds mid-size centers to ensure operational efficiency, optimal center margins, occupancy build-up and community engagement.The company has a demand-based build approach wherein it only builds a small portion of the center with basic amenities and the rest is built out when it enters into arrangements with clients.

It also offers allied services such as food and beverages, information technology support services, infrastructure services such as storage and customization, event hosting and meeting arrangements. The clients, i.e, corporates and MNCs, find this arrangement more convenient, especially after the COVID-19 pandemic, due to flexible tenures, real estate cost optimization and decentralized work models.

As of 31 December 2023, it is present in 16 cities and 52 micro markets in India with its network of 169 centers, with a total capacity of 105,258 seats. Of these, 138 centers are operational, and 31 centers are under fit-out stage. In addition, the company has signed letters of intent for 13 more centers with a capacity of 10,859 seats.  The company serves clients from various industries such as technology, media and entertainment, automotives, financial services and healthcare. Some of its clients include Marlabs, Body Cupid, Lenovo (India), Fujitsu General (India), Ideaforge Technology, Mahindra First Choice Wheels, Clevertap and Usha International.

Between FY21 and FY23, it saw a CAGR rise of 45% in its revenue from operations. However, the company has incurred losses in the last three financial years. For the nine months ended 31 December 2023, its revenue from operations stood at ₹616 crore, while net loss was at ₹18.9 crore.

Meanwhile, the penetration of the flexible workspace in the office space (non-SEZ) segment in India is expected to increase to ~15.5% in 2026. Moreover, the Indian office market is expected to grow at a CAGR of 6.3% from 2023 to 2026, which could benefit the company. 

And now, Awfis Space Solutions Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹598.93 crore comprising fresh issue, aggregating to ₹128 crore, as well as an offer for sale, aggregating to ₹470 crore. The money raised from the fresh issue will be utilized to establish new centers, fund working capital requirements and for general corporate purposes. Its shares will be listed on the NSE and BSE.

Here are key details about the Awfis Space Solutions Limited IPO:

Financial snapshot

Here’s a quick look at Awfis Space Solutions Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Well positioned to benefit from the expected CAGR growth of 18–19% in Tier 1 cities for leasing flexible workspaces between 2022 and 2026 as it is the largest flexible workspace solutions company in India. 
2. Ability to scale business and network rapidly due to its MA model as it allows it to reduce the capital-intensive liabilities associated with real estate. 
3. Can cater to a wide spectrum of requirements of the market such as organized to unorganized, institutional to non- institutional and across various grades and classes of properties due to its diverse supply sourcing strategy. 
4. Offers both forward and backward integration by offering design and build services to clients as well as by providing facility management services on behalf of space owners.
5. Strong financial metrics with a 45% CAGR growth in its revenue from operations between FY21 and FY23.

Risks and threats

1. The company has consistently incurred losses from FY21 to Q3 FY24 due to increases in its depreciation and amortization expenses, employee benefits expenses and finance costs. 
2. Has consistently experienced negative cash flows from investing and financing activities between FY21 and Q3 FY24. 
3. Dependent on coworking spaces located in Bangalore, Mumbai, Pune and Hyderabad, which accounted for 67% of its rental income as of 31 December 2023.
4. Cannot guarantee future partnerships with space owners on favorable revenue-sharing models, which might affect its profitability. 
5. Exposed to risks associated with the development and construction of spaces such as delays in construction, contract disputes and claims, and fines or penalties levied by government authorities. 

Awfis Space Solutions Limited IPO details

|Awfis Space Solutions Limited IPO date

According to the offer document filed by the company with the SEBI, the Awfis Space Solutions IPO’s opening date – in other words, the Awfis Space Solutions IPO launch date – will be 22nd May 2024. The Awfis Space Solutions IPO closing date is 27th May 2024. After this, investors will be updated about the allotment status on 28th May 2024.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 29th May 2024. The Awfis Space Solutions IPO listing date is 30th May 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

|Awfis Space Solutions Limited IPO Price Band

The IPO is a fresh issue as well as an offer for sale. The Awfis Space Solutions IPO price band has been set between ₹364 and ₹383 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Awfis Space Solutions IPO listing price will be determined on 30th May 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

|Awfis Space Solutions Limited IPO Lot size

The Awfis Space Solutions IPO details have been declared. The Awfis Space Solutions IPO lot size is set at 39 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Awfis Space Solutions IPO issue size is approx ₹598 crore.

How to pre-apply for the Awfis Space Solutions Limited IPO?

You can pre-apply for the Awfis Space Solutions Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Awfis Space Solutions Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Awfis Space Solutions Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Awfis Space Solutions Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Awfis Space Solutions Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Awfis Space Solutions Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Awfis Space Solutions LimitedIPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Awfis Space Solutions Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Awfis Space Solutions Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Awfis Space Solutions Limited IPO

To apply for the Awfis Space Solutions Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Awfis Space Solutions Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Awfis Space Solutions Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.