Awfis Space Solutions IPO opens on May 22: Check business model, financials, and key IPO details

Awfis Space Solutions IPO: Workspace solutions provider Awfis Space Solutions IPO will open for subscription on Wednesday, May 22.

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.

The company’s initial public offer worth ₹598.93 crore comprises a fresh issue of 33 lakh shares amounting to ₹128 crore and an OFS (offer-for-sale) of 1.23 crore shares worth ₹470.93 crore.

Here are a few key details to know before participating in the Awfis Space Solutions IPO subscription:

Awfis Space Solutions business model

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.

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.

Awfis Space Solutions network

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.

To know more and pre-apply for Awfis Space Solutions IPO, click here

Awfis Space Solutions Financials

Between FY21 and FY23, Awfis Space Solutions 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.

Awfis Space Solutions Limited IPO objective

Awfis Space Solutions plans to utilise the money raised via the IPO for capital expenditure to establish new centres, fund working capital requirements and for other general corporate purposes. 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.

Awfis Space Solutions Limited IPO dates

Awfis Space Solutions Limited IPO subscription window will open on Wednesday, May 22, and close on Monday, May 27. The IPO share allotment status will be finalised by May 28.

Awfis Space Solutions Limited shares will be listed on the BSE and the NSE on May 30.

Awfis Space Solutions Limited IPO price band and lot size

The price band for Awfis Space Solutions public issue has been set as ₹364 to ₹383 per share. The minimum lot size for retail investors is 39 shares, aggregating to a minimum investment of ₹14,937.

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