Awfis Space Solutions Limited IPO Review –
Awfis Space Solutions Limited IPO is coming up with its IPO which is set to open from 22nd May 2024 to 27th May 2024. This article will analyze the financials , strengths and weaknesses of the Awfis Space Solutions Limited. Keep scrolling below to read more!
Awfis Space Solutions Limited IPO Overview –
Established in 2016, Awfis Space Solutions Limited offers flexible workspace solutions in India.
The company offers a comprehensive range of solutions to a diverse clientele, ranging from individual flexible desk needs to customize office spaces for startups, small and medium enterprises(SMEs) and large companies.
Their core offerings include co-working solutions such as flexible workspaces, custom office setups, and mobility solutions. Additionally, Awfis Space provides a variety of allied services, including food and beverage, IT support and infrastructure services including storage and customization for events and meetings.
As of December 31, 2023, the company holds the top rank among the top players in India’s flexible workspace solutions segment in terms of total centers, with a strong foothold in multiple micro-markets across the country.
With a total of 169 centers spanning 16 cities, offering over 105,258seats and occupying 5.33 million sq. ft., Awfis Space is committed to further expansion, evident from the 13 additional centers in the pipeline.
The company’s clientele has 2,295 members and a presence in 52 micro-markets.
Awfis Space Solutions Limited IPO Synopsis-
Awfis Space Solutions Limited IPO is set to be open from 22nd May 2024 to 27th May 2024, offering fresh issue of 3,342,037 shares
aggregating to Rs 128.00 crores and and Offer-for-Sale (OFS) of 12,295,699 shares aggregating to Rs 470.93 crores. This NSE,BSE IPO follows a Book Built Issue IPO.
The total issue size of this IPO amounts to Rs.598.93 Crores. The company has allocated shares 10% to retail investors, 75% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 22nd May 2024 |
| Closing Date | 27th May 2024 |
| Lot Size | 39 Shares |
| Face Value | Rs. 10 |
| IPO Size | Rs. 598.93 Cr |
| Fresh Issue | Rs. 128 Cr |
| IPO Price Range | Rs. 364- 383 |
| Min. Investment | Rs. 14,937 |
| Offer for Sale (OFS) | Rs. 470.93 Cr |
| Basis of Allotment | 28th May 2024 |
| Refunds | 29th May 2024 |
| Listing Date | 29th May 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Book Running Lead Managers –
ICICI Securities Limited
Axis Capital Limited
Iifl Securities Ltd
Emkay Global Financial Services Ltd
Registrar to the offer –
The registrar for the IPO is Bigshare Services Pvt Ltd. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
- Funding capital expenditure towards the establishment of new centres
- Funding their working capital requirements
- General corporate purposes
Financial Status –
Evaluation of P/E Ratio
Considering the FY23 EPS of Rs (8.11) from the last year, the resulting P/E ratio is (47.22)x.
Taking into account the weighted EPS of Rs (9.01) for the last three years, the P/E ratio amounts to (42.50)x.
| Particulars(in Rs. Crores) | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
| Revenue From Operations | 633.69 | 565.79 | 278.72 |
| EBIDTA | 176.06 | 89.99 | 90.74 |
| PAT | -18.94 | -46.64 | -57.16 |
| Total Assets | 1352.25 | 930.61 | 559.69 |
| Total Borrowings | 23.72 | 10.92 | 12.11 |
Peers of Awfis Space Solutions Ltd IPO –
Acording to the Awfis Space Solutions DRHP, there is no listed company of comparable size and business model of the company in India or abroad.
IPOs Strengths –
Leadership in a large and expanding marketplace.
Innovating within the flexible workspace sector through their MA model adoption.
Company also has diverse strategies for space sourcing and meeting demand.
Growing through an integrated platform strategy.
Demonstrating strong financial and operational metrics.
Experienced and diverse senior management team.
IPOs Weakness –
The company has a history of net losses, negative earnings per share, and return on net worth.
Reported negative cash flows in the past and may persist in the future.
The company’s growth prospects may be adversely affected by macroeconomic factors.
The MA model necessitates the company to identify and partner with space owners, and agree to profit or revenue-sharing models with them.
Company faces significant competitive pressures in its business operations.
High working capital requirements.
IPO GMP Today –
The latest GMP of Awfis Space Solutions Limited is Rs. 165.
Conclusion –
The company operates in a competitive segment and has experienced losses in the past. Additionally, the EPS and P/E of the company are also negative. Experienced investors may apply in the upcoming IPO after thorough evaluation of all the factors to gain optimal profit.
Also, investors should conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision. Experienced investors can apply for the IPO after carefully evaluating all factors to maximize their gains.
