A co-working space solution provider opened its IPO on May 22, which will close on May 27. Awfis Space Solutions will raise Rs 598.93 crore, out of which the fresh issue is of Rs 128 crore and 12.3 million shares will be offloaded in an offer for sale to collect Rs 470.93 crore. The company opened the issue on May 22 and will close on May 27. Retail buyers can bid in a range of Rs 364 to 383 per equity share. 

About Awfis Space Solutions

Awfis Space Solutions provides workspace solutions. It is India’s largest flexible workspace solutions company, based on the total number of centres. The company offers a comprehensive range of flexible workspace solutions, accommodating diverse needs from individual desks to customised office spaces for start-ups, small and medium enterprises (SMEs), large corporations, and multinational companies. The company offers flexible workspace solutions for different group sizes, from a single seat to many seats. Clients can rent these spaces for as short as one hour or as long as several years. It also offers support services such as IT support, food and beverages, event hosting, and infrastructure services.

Issue details

Awfis Space Solutions shares allotment is expected to be finalised on May 28. While the listing is tentatively placed on May 30. The retail buyer needs to apply for a minimum of 39 shares equating to Rs 14,937. ICICI Securities, IIFL Securities, Axis Capital, and Emkay Global Financial Services are book-running lead managers. Bigshare Services is handling the work of the registrar.

Grey Market Premium

The company’s shares were attracting a premium of over 29% in the grey market. It is an unofficial market where shares exchange hands illegally. Market participants keep track of GMP to evaluate listing gains. 

Employee Reservation

Awfis Space Solutions has kept aside 57,636 shares for employees of the company, which will be available at a discount of Rs 36 to the issue price. 

Expert’s view on Awfis Space Solutions

“The company reported a negative PAT, resulting in a negative EPS for the period. However, after adjusting for the depreciation of right-of-use assets, the company’s P/E multiple at the higher price band, based on the fully diluted post-IPO equity, comes out to 39.4x (to its FY23 cash EPS of Rs. 9.7). Considering the company’s future growth prospects and performance, this pricing appears reasonable, and thus we assign a “Subscribe” rating for this issue, said Choice Broking in an IPO note.