Awfis Space Solutions Limited IPO: Review, Valuation, Date & GMP

Awfis Space Solutions Limited IPO - Complete Overview

Established in 2004, Awfis Space Solutions Limited stands as the largest provider of flexible workspace solutions in India. 

The company offers a comprehensive range of solutions to a diverse clientele, ranging from individual desk needs to customized office spaces for startups, SMEs, and large corporations.

Their core offerings include co-working solutions such as flexible workspaces, custom office setups, and mobility solutions. Additionally, Awfis Space provides a variety of allied services, including food and beverage, IT support, infrastructure services, and event hosting. 

As of December 31, 2023, the company holds the top rank among the top 5 players in India's flexible workspace segment, with a presence in 16 cities and a strong foothold in multiple micro-markets across the country. 

With a total of 169 centers spanning 16 cities, offering over 105,000 seats and occupying 5.33 million sq. ft., Awfis Space is committed to further expansion, evident from the 13 additional centers in the pipeline. 

The company boasts a client base exceeding 2,295 and a presence in 52 micro-markets. 

Notably, 81.66% of Awfis Space's centers are commercial assets, while the remaining 18.34% are alternate assets, as of December 31, 2023.

 

Awfis Space Solutions Limited IPO Overview

Awfis Space Solutions Limited IPO date is slated to be open for subscription from May 22, 2024, to May 27, 2024. This BSE, NSE IPO follows a Book Built Issue IPO.

Awfis Space Solutions Limited IPO price is fixed in the range of Rs.364 to Rs.383 per share. 

The total issue size of this IPO amounts to Rs.598.93 Cr. The company has allocated shares 10% to retail investors, 75% to institutional and 15% to non instituional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Awfis Space Solutions Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowing has decreased.

Amount in Crore

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	1,352.25	930.61	559.69
Total Revenue	633.69	565.79	278.72
PAT	-18.94	-46.64	-57.16
Net worth	247.19	169.36	94.72
Reserve & Surplus	-265.56	-204.30	-223.37
Total Borrowings	23.72	10.92	12.11

Segment-wise Revenue Break Up

(Amount in Million)

 

The Objective of the Issue

The Company proposes to utilize the Net Proceeds to fulfill the following objectives: 

1. Funding capital expenditure towards establishment of new centers.

2. Funding our working capital requirements.

3. General corporate purposes.

Peers of Awfis Space Solutions Limited IPO

Acording to the Awfis Space Solutions DRHP, there is no listed company of comparable size and business model of the company in India or abroad.

Evaluation

The IPO is priced within the range of Rs.364 to Rs.383 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs (8.11) from the last year, the resulting P/E ratio is (47.22)x.

• Taking into account the weighted EPS of Rs (9.01) for the last three years, the P/E ratio amounts to (42.50)x.

Comparative Analysis with Listed Peers

There is no listed company of comparable size and business model of the company in India or abroad.

IPO's Strengths 

• Leading in a vast and expanding marketplace.

• Innovating within the flexible workspace sector through our MA model adoption.

• Implementing diverse strategies for space sourcing and meeting demand.

• Growing through an integrated platform strategy.

• Achieving robust financial and operational metrics.

• Utilizing an experienced and diverse senior management team.

IPO weaknesses 

• The company has a track record of net losses, negative earnings per share, and return on net worth.

• Negative cash flows were experienced in previous fiscal periods and may persist in the future.

• The company's growth prospects may be adversely affected by macroeconomic factors.

• The MA model necessitates the company to identify and partner with space owners, and agree to profit or revenue-sharing models with them.

• Significant competitive pressures are faced by the company in its business operations.

• Risks inherent in the SL model may pose challenges that the company may struggle to mitigate.

IPO GMP 

The latest GMP of Awfis Space Solutions Limited is Rs.80.

Awfis Space Solutions Limited IPO timetable (Tentative)

Awfis Space Solutions Limited IPO is scheduled from May 22 to May 27, 2024, with allotment on May 28, refund initiation on May 29, and listing on May 30, 2024.

Awfis Space Solutions Limited IPO Details 

Awfis Space Solutions Limited IPO, with a face value of Rs.10 per share, opens on May 22 and closes on May 27, 2024, offering 15,637,736 shares at Rs.364 to Rs.383 per share, with a lot size of 39 shares, aiming to raise Rs.598.93 Cr, and will be listed on BSE, NSE.

Awfis Space Solutions Limited IPO Lot Details 

For Awfis Space Solutions Limited IPO, the retail investor can invest minimum in 1 lot (39 shares) at Rs.14,937 and maximum in 13 lots (507 shares) at Rs.194,181 while for HNI investors, the minimum investment is 14 lots (546 shares) at Rs.209,118.

Awfis Space Solutions Limited IPO Reservation

 

Promoters and Management of Awfis Space Solutions Limited

The promoter of the company is Amit Ramani and Promoter Selling Shareholder is Peak XV.

 

Awfis Space Solutions Limited IPO Lead Managers:

• ICICI Securities Limited

• Axis Capital Limited

• Iifl Securities Ltd 

• Emkay Global Financial Services Ltd

Dividend Policy

The Company has not declared any dividends on the Equity Shares during the last three Fiscals.

Conclusion

The company operates in a competitive segment and has experienced losses in the past. Additionally, the EPS and P/E of the company are also negative. Experienced investors may apply in the upcoming IPO after thorough evaluation of all the factors to gain optimal profit.