Awfis Space Solutions will launch its IPO on May 22, aiming to raise Rs 128 crore. Key investors, including Peak XV Partners and ChrysCapital, will divest 12.3 million shares. Despite increased revenue, Awfis reported losses. IPO proceeds will fund expansion, new centres, and working capital.
Awfis Space Solutions, a prominent player in the coworking space industry, is set to make a significant move. On May 22, the company will launch its initial public offering (IPO), a strategic step that could reshape the sector’s competitive landscape.
The company has revised its fundraising goal, reducing the fresh capital from the IPO to Rs 128 crore, down from the initially proposed Rs 160 crore. In contrast, the offer for sale (OFS) component has increased to 12.3 million shares, up from 10 million shares. Key investors such as Peak XV Partners and ChrysCapital use this opportunity to divest part of their stakes. Specifically, Peak XV Partners will sell up to 6.6 million shares, while Bisque, a ChrysCapital unit, will offload 5.6 million shares. Additionally, Link Investment Trust will sell 85,201 shares.
Awfis received clearance from the Securities and Exchange Board of India (Sebi) on April 23 to proceed with its IPO. The company is expected to announce the price band for the offering soon, providing more details to potential investors.
This IPO is part of a broader trend among new-age firms aiming to go public. Notably, Go Digit General Insurance, backed by Fairfax and Peak XV Partners, launched its IPO this month, albeit at a reduced size compared to initial plans. Other companies like Ola Electric, Swiggy, and Firstcry have also filed draft documents with Sebi, indicating a vibrant IPO market in the tech and services sectors.
Awfis’s financial performance has shown significant growth, with operating revenue for the nine months ending December 2023 at Rs 616 crore. This represents a substantial increase from the Rs 545 crore reported for FY23, which was more than double the revenue of FY22. Despite this growth, the company continues to face challenges, reporting a loss after tax of Rs 18.9 crore for the April-December 2023 period and a net loss of Rs 46.6 crore for FY23, compared to Rs 57.3 crore in FY22.
The IPO proceeds will play a crucial role in Awfis’s growth strategy. The funds will be used to establish new centres, expand the company’s footprint, meet working capital requirements, and for general corporate purposes. This strategic move is expected to strengthen Awfis’s market position and support its long-term growth objectives.
In its last fundraising round in 2022, Awfis was valued at approximately $110 million, reflecting its strong market presence and potential for future growth. The upcoming IPO is a pivotal moment for Awfis as it continues to innovate and expand in the dynamic coworking space industry.
