Awfis Space Solutions gets listed at 13% premium

30 May 2024 , 09:50 AM

Awfis Space Solutions’ stock got listed at a 13% premium today on the exchanges. The company’s shares opened at ₹435 on the NSE, reflecting a 13.58% premium over the issue price of ₹383. On the BSE, its shares got listed at ₹432, marking a 12.86% increase.

The ₹599-crore initial public offering (IPO) of Awfis Space Solutions received an overwhelming investor response, recording a subscription rate of 108.56 times during the offer period from May 22 to May 27. Investors applied for 93.68 crore equity shares, significantly exceeding the offer size of 86.29 lakh equity shares. The non-institutional investor segment saw bids 129.81 times their allotted quota, while qualified institutional buyers and retail investors subscribed 116.95 times and 54.58 times their respective portions.

The IPO comprised a fresh issue of shares worth ₹128 crore and an offer-for-sale (OFS) of 1.22 crore equity shares valued at ₹470.93 crore at the upper price band of ₹364-₹383 per share.

Awfis employs two distinct models for sourcing and procuring workspaces: the Straight Lease (SL) and the Managed Aggregation (MA) models. The company offers a variety of workspace solutions, including co-working spaces and enterprise solutions, catering to diverse needs from individual desks to customized office spaces for start-ups, small and medium enterprises (SMEs), large corporations, and multinational companies. Clients can rent spaces for durations ranging from an hour to several years.

Ranking first among the top five benchmarked players in the flexible workspace segment, Awfis has a presence in 16 cities across India and operates in the highest number of micro-markets within the country. Despite its strong market position and revenue growth, Awfis has faced challenges on the profitability front.

The New Delhi-based company reported a net loss of ₹46.6 crore for the financial year ending March 2023, an improvement from a net loss of ₹57.2 crore the previous year. During the same period, revenue from operations surged by 112%, reaching ₹545.3 crore, up from ₹257 crore.