Should you subscribe to IPO of Awfis Space Solutions Limited?
AI Summary of the IPO
Awfis Space Solutions Limited, one of India’s largest flexible workspace providers, is set to launch its IPO on May 22. The ₹598.93 crore public of Awfis Space Solutions IPO comprises a fresh issue of 33 lakh shares worth ₹128 crore and an offer-for-sale (OFS) of 1.23 crore shares valued at ₹470.93 crore. The IPO will close on May 27, with shares priced between ₹364 to ₹383 each.
About Awfis
Awfis Space Solutions Limited is a workspace solution provider in India. Founded by Amit Ramani in 2015, it operates in 16 cities across India.It offers flex workspaces, customized office spaces, mobility solutions of varied seat cohorts ranging from a single seat to multiple seats.
Comparison and competition
The company does not have direct listed competitior. Interesting comparison is WeWork, which was founded by Mr. Adam Neumann in 2010 with the vision to create environments where people and companies come together and do their best work. Wework was valued USd 49 Billion in Jan 2020 and went to bankcurruptcy paper in November 2023.
Apart from WeWork India, the company faces compeition from Indiqube, Smartworks, and many unorganised players.
The company offers a wide range of flexible workspace solutions, catering to the needs of individuals, start-ups, SMEs, and large corporations.
The company’s core solution is co-working, including flexible workspaces, custom office spaces, and mobility solutions. Awfis Space Solutions Limited also provide supporting services such as food and beverages, IT support, infrastructure services, and event hosting.
AWFIS Space solutions business model
It operates on a managed aggregation (MA) model, procuring spaces from developers or owners. The owners incur capital expenditure during fit-out, and the rest of the expenses are managed by the operators, i.e, Awfis. Then it builds mid-size centers to ensure operational efficiency, optimal center margins, occupancy build-up and community engagement.
The company has a demand-based build approach wherein it only builds a small portion of the center with basic amenities and the rest is built out when it enters into arrangements with clients.
The clients, i.e, corporates and MNCs, find this arrangement more convenient, especially after the COVID-19 pandemic, due to flexible tenures, real estate cost optimization and decentralized work models.
Awfis Space Solutions Network
As of 31 December 2023, it is present in 16 cities and 52 micro markets in India with its network of 169 centers, with a total capacity of 105,258 seats. Of these, 138 centers are operational, and 31 centers are under fit-out stage. In addition, the company has signed letters of intent for 13 more centers with a capacity of 10,859 seats.
Awfis Space solutions Limited IPO date
Awfis Space Solutions Limited IPO subscription window will open on Wednesday, May 22, and close on Monday, May 27. The IPO share allotment status will be finalised by May 28.
Awfis Space Solutions Limited shares will be listed on the BSE and the NSE on May 30.
Should you subscribe to it?
Analysts have recommended to subscribe to the IPO of Awfis Space Solutions Limited for risk-taking investors. The company has a unique business model and is the first of its kind in the listing space, which may lead to some listing gains. However, it is important to note that the offer comes with a higher OFS, which could be a concern for new investors. Considering all parameters, it is advisable for risk-taking investors to subscribe to the issue.
What is Grey Market Premium of Awfis Solutions?
Grey market Price is ranging from Rs. 80 to Rs. 165 per share above listing price.
Table Awfis Space solutions IPO dates
IPO Open Date : 22-05-2024
IPO Close Date : 27-05-2024
Basis of Allotment
Finalisation Date* : 28-05-2024
Refunds Initiation* : 29-05-2024
Credit of Shares
to Demat Account* : 29-05-2024
IPO Listing Date* : 30-05-2024
