Awfis Space Solution IPO Opens Today: Should You Subscribe?

The initial public offering (IPO) of Awfis space solution
opens on May 22. The closing of the bidding will be
on May 27th. The IPO price band is set as
₹364 to ₹383 per share. The bidder can bid for a
minimum of 39 equity shares and its multiples
thereafter and the minimum investment amount
required by the retail investors is ₹14,937.

Awfis Space Solution Limited offers flexible
workspace solutions. The company offers flexible
desks and customized office spaces  for startups,
small and medium enterprises, large corporates,
and multinational corporations. In addition to
workspace facilities, Awfis also provides ancillary
services such as catering, IT assistance  and
infrastructure support.

At the upper end of the price band Awfis space IPO
size is worth rupees 600 crore, which comprises a
combination of fresh issue of 33 lakh equity
shares aggregating to 128 crore and an offer for
sale component of 1.23 crore shares aggregating
to 470.93 crore. The funds raised will be utilized
for expansion and establishing new centers,
working capital requirements and general
corporate purposes. The company mobilized
₹268.6crore from institutional investors via the
anchor book on 21 May.

Analysts covering the Awfis space solution IPO
share mixed views considering the company’s
current financial situation and competitive
landscape. The company had a history of net
losses, negative EPS, and return on net worth and
needs to generate and sustain increased revenues.
The company has experienced negative cash
flows in the previous fiscal year and may continue
to have a negative cash flow.

Awfis space solution is touted to be the largest
flexible workspace solution company in India as
of December 31 2023 based on the total number of
centers as of December 31 2023. The company has
169 total centers across 16 total cities in India.
Awfis has entered into a signed letter of intent
with space owners for 13 additional centers with
10,839 seats. As on December 31 2023, they have
over 2,295 clients and have a presence in 52 micro
markets in India.

The finalization of the basis of allotment will be
done on or by May 28, with the initiation of
refunds slated for 29 May. The company’s shares
will be listed on the stock exchange on 30 May.

DISCLAIMER

Remember to conduct thorough
research and consult with a financial
advisor before making any
investment decision.