Dev Accelerator Limited, backed by Dev Information Technology Ltd, is preparing for a major expansion in the coworking space industry with its Initial Public Offering (IPO) launch. The company aims to use the capital from the IPO to set up new coworking spaces, positioning itself as a key player in the growing flexible office market.

Dev Information Technology Ltd, a well-established IT services company listed on NSE and BSE, holds a 22% stake in Dev Accelerator Ltd, valued at approximately ₹100 crore. The IPO will offer up to 2.47 crore equity shares with a face value of ₹2 each, allowing the company to list its shares on NSE and BSE.

The funds from the IPO are targeted for multiple strategic goals, primarily focused on expanding coworking spaces across India. According to the company, proceeds will be used to secure new locations, pay security deposits, and repay certain debts, including redeeming non-convertible debentures (NCDs). Additionally, the funds will support general corporate purposes.

Dev Accelerator has experienced a financial turnaround, reporting a net profit of ₹0.437 crore for FY24, a notable improvement after consecutive losses in FY23 (₹12.8 crore) and FY22 (₹7.5 crore). Despite this positive shift, the company acknowledges a potential risk: “While we achieved profitability in FY24 and generated positive cash flows over the past three years, there is no guarantee that this trend will continue.”

Pantomath Capital Advisors Private Limited is managing the IPO, and KFIN Technologies Limited is serving as the registrar. As Dev Accelerator looks to establish itself in the competitive coworking market, its expansion through this public issue aims to enhance its offerings and capitalise on the growing demand for flexible workspaces.