Awfis Space Solutions IPO fully subscribed on day 1, retail investors bid highest; check latest GMP, subscription status

Awfis Space Solutions IPO: The initial public offering (IPO) of Awfis Space Solutions Limited opened for subscription on Wednesday, May 22 and was fully subscribed at 2.03 times by the end of today's session, according to stock exchange data. The mainboard IPO of the workplace solution provider will remain open for investors till Monday, May 27, 2024.

Awfis Space Solutions offers a wide range of flexible workspace solutions, from individual flexible desk requirements to tailored office spaces for start-ups, small and medium companies (SMEs), major organisations, and multinational corporations. The company's core solutions include co-working spaces, flexible workspaces, custom office spaces, and mobility solutions.

The company has reserved a total of 1,558,551 equity shares or 9.96 per cent to retail investors, 29.89 per cent for qualified institutional buyers (QIBs), and 14.94 per cent for non-institutional investors (NIIs) in the issue. 7,013,483 equity shares or 44.83 per cent are also set aside for anchor investors.

Also Read: Awfis Space Solutions IPO opens today. Check GMP, subscription status, Should you subscribe?

Awfis Space Solutions IPO Subscription Status

According to BSE data, Awfis Space Solutions IPO was subscribed 2.03 times by the end of the first day of subscription. The mainboard IPO received 1,74,77,187 share applications against offered 86,29,670 shares on Wednesday. Retail investors bid the highest as the portion reserved for them was booked 6.04 times.

The NII portion received 35,86,32,000 shares against 4,60,000 shares offered and the portion was booked 2.76 times. The portion reserved for QIBs was booked 0.03 per cent times on the first day, according to stock exchange data.

View Full Image Awfis Space Solutions IPO details at a glance

Awfis Space Solutions IPO Details

At the upper end of the price band, Awfis Space IPO size is worth ₹598.93 crore, which comprises a combination of fresh issue of 33 lakh equity shares aggregating to ₹128 crore and an offer for sale (OFS) component of 1.23 crore shares aggregating to ₹470.93 crore. Awfis Space Solutions IPO price band is set at ₹364 to ₹383 per share. The IPO lot size is 39 shares and the minimum investment amount required by retail investors is ₹14,937.

Awfis Space IPO allotment is expected to be finalized on May 28, and the listing date is May 30. The equity shares of Awfis Space Solutions will be listed on both the stock exchanges, BSE and NSE. The company proposes to utilise the net issue proceeds for funding capital expenditure towards the establishment of new centres and working capital requirements.

ICICI Securities, Axis Capital, IIFL Securities and Emkay Global Financial Services are the book running lead managers of the Awfis Space Solutions IPO, while Bigshare Services Pvt Ltd is the IPO registrar.

The company's promoters include Amit Ramani, an individual promoter, and Peak XV, a promoter-selling shareholder. The promoters together held 27,444,403 equity shares, representing 41.05 per cent of their company's pre-offer issued, subscribed, and paid-up equity share capital on a fully diluted basis.

Also Read: Peak XV-backed Awfis Space Solutions IPO to announce price band tomorrow; 10 key things to know from RHP

As of December 31, 2023, the firm operated 169 facilities in 16 cities throughout India, totalling 105,258 seats and a chargeable area of 5.33 million square feet. Furthermore, 31 centres with 25,312 seats are now being fitted out, with a billable area of 1.23 million square feet. Awfis Space Solutions's revenue climbed by 103 per cent and profit after tax increased by 18.4 per cent during the fiscal years ended March 31, 2023 and March 31, 2022.

Awfis Space Solutions IPO GMP

Awfis Space Solutions IPO GMP or grey market premium dropped to ₹135 today from yesterday's ₹150. Shares were trading at premium of 35.28 per cent to an estimated listing price of ₹518, over their issue price of ₹383 in the grey market, according to investorgain.com. 'Grey market premium' indicates investors' readiness to pay more than the issue price.

Awfis Space Solutions IPO Review

Awfis Space Solutions is the largest flexible workspace solutions company in India as of 9MFY24 providing solutions to small and medium enterprises (SMEs), based on the total number of centers.

Rajan Shinde, Research Analyst at Mehta Equities Ltd said, “We believe Awfis Space Solution Ltd IPO brings investors a unique opportunity to invest in a leading player who is ranked no 1 among the top five benchmarked players in India in the flexible workspace segment.''

The flexible workspace market is projected to grow at a CAGR of 18-19 per cent in Tier 1 cities and demand in Tier 2 cities is set to outpace supply by 1.7 times, positioning Awfis well to capture this expansion. ‘’We also think the company's innovative MA (Managed Aggregation) model has increased operational seats to 66.43 per cent by the end of 2023, reducing capital expenditure per seat to Rs. 50,000, enhancing unit economics and operational efficiency,'' said Shinde.

Also Read: IPO rush sets up India's equity market for another record year

According to Swastika Investmart, while Awfis Space Solutions exhibits promising top-line growth, achieving profitability remains a key challenge. “Awfis has experienced negative cash flow in the past and operates in a highly competitive environment susceptible to macroeconomic fluctuations. Considering the potential for future growth balanced against the current financial situation and competitive landscape, we recommend a neutral stance on the Awfis IPO," said Swastika Investmart in its IPO note.

‘’While due to its unique business model and first-of-its-kind getting into listing space and early mover advantage, the company may command some listing gains. Investors should also understand the offer which comes with higher OFS which is an area of concern for new investors. Hence considering all parameters, we recommend only risk-taking investors can “SUBSCIRBE" to Awfis Space Solution Ltd IPO with listing gain prospective only,'' added Mehta Equities' Shinde.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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