Dev Accelerator Limited is launching its IPO from September 10 to 12, 2025, aiming to raise around Rs. 143 crore through a fresh issue of 2.35 crore shares. Positioned as a rising flexible office space provider in India, the company’s robust revenue growth and expansion plans make this an interesting offer for investors, despite certain financial risks.
IPO Overview
Dev Accelerator Limited (DevX) focuses on flexible coworking and managed office spaces, operating 28 centres across 11 cities as of May 2025. The IPO consists solely of a fresh issue, with no promoter share sale, and is managed by Pantomath Capital Advisors. The shares will list on NSE and BSE on September 17, 2025. The grey market premium stood at about 16.39% over the issue price as of early September.
Use of IPO Proceeds
The Rs. 143.35 crore raised will primarily fund capital expenditure—such as fit-outs and security deposits for new centres, including upcoming locations in Surat and Sydney. Additionally, Rs. 35 crore will go towards debt repayment to strengthen the company’s balance sheet, with the remainder allocated for corporate purposes and business growth.
Financial Performance
DevX recorded revenue growth of nearly 47% from Rs. 108 crore in FY24 to Rs. 159 crore in FY25. Net profit rose over 300%, from Rs. 0.44 crore to Rs. 1.77 crore. Return on capital employed (ROCE) stands strong at 25.95%, though return on net worth (RoNW) is a modest 3.24%. The company carries a debt-to-equity ratio of 2.39x, indicating leverage concerns despite improving metrics.
Strengths and Risks
Dev Accelerator shows strong occupancy and a diversified revenue model, with experienced promoters and an asset-light approach that favours managed properties. However, it faces limitations such as a smaller scale relative to peers, high debt, dependence on the Indian market, and challenges related to rapid expansion.
The FlexInsights Take
Dev Accelerator’s IPO provides a compelling chance to tap into India’s growing demand for flexible office solutions. Its early presence in tier-2 cities and diversified offerings set it apart. Nonetheless, potential investors should weigh the company’s high debt and relatively smaller scale before making decisions. Those betting on long-term growth in India’s coworking sector may find DevX a promising, albeit moderately risky, addition to their portfolio.
