Delhi-based workspace solutions startup Awfis Space Solutions has taken a significant leap toward expansion and growth by filing its DRHP with SEBI for an Initial Public Offering (IPO). This strategic move is poised to fuel the company’s revolution through a multi-dimensional approach to enhance its market presence, fortify financial prowess, and cater to diverse corporate requirements.
IPO Structure and Share Offering:
The proposed IPO encompasses a fresh issue of equity shares valued up to Rs 160 crore. It also includes an Offer for Sale (OFS) of up to 10,023,172 equity shares. The OFS presents an opportunity for existing shareholders to divest their stakes. Some companies, like Peak XV Partners Investments V, Bisque Limited, and Link Investment Trust, plan to offload significant portions of their shares.
Utilization of Raised Capital:
Awfis delineates its primary objective for capital infusion through the IPO, earmarking funds to fuel various corporate activities. The proceeds from the fresh issue are slated for capital expenditure, chiefly aimed at establishing new centers, supporting working capital needs, and addressing other pivotal corporate requirements.
Financial Performance and Growth Trajectory:
As of June 30, 2023, Awfis reigns as India’s largest flexible workspace solutions provider, as a CBRE report attests, emphasizing its market dominance based on the total number of centers. The company’s fiscal year ending March 2023 exhibited substantial financial growth, with revenue soaring to Rs 545 crore from Rs 257 crore in FY22. Additionally, Awfis reported a noteworthy 18.67% reduction in losses, marking a decline to Rs 46.6 crore in FY23.
Leadership and Stakeholder Landscape:
Established in 2015, Awfis is spearheaded by CEO Amit Ramani, who holds an 18.19% stake, exemplifying his pivotal role in the company’s direction. Notable stakeholders such as Bisque Ltd, Peak XV, and investors, including QRG Investments and VBAP Holdings, contribute significantly to Awfis’ diverse ownership structure.
IPO Management and Industry Developments:
The IPO process is overseen by eminent book-running lead managers, comprising ICICI Securities, Axis Capital, IIFL Securities, and Emkay Global Financial Services, highlighting a strategic alliance for Awfis’ successful transition into the public market. Concurrently, the IPO landscape witnesses dynamic activity with Ola Electric filing its DRHP with SEBI and reports speculating omnichannel retailer FirstCry’s impending submission of IPO papers by the month’s end.
