Mumbai, India — The initial public offering (IPO) of co-working space firm Awfis Space Solutions has garnered significant interest, with the subscription reaching 50.35 times on the last day of bidding, Monday, May 27, at 14:09 IST, according to BSE data. The IPO, which opened on May 22, saw bids for 43,44,62,340 shares against the 86,29,670 shares on offer.
The retail investor segment was subscribed 41.50 times, while non-institutional investors (NIIs) subscribed 90.78 times. The qualified institutional buyers (QIBs) portion saw a 33.46 times subscription, and the employee portion was booked 19.51 times.
Prashanth Tapse, Senior Vice President of Research at Mehta Equities, noted the IPO’s positive reception, despite potential future negative cash flows and a complex business model. He attributed the strong interest to Awfis Space Solutions’ first-mover advantage in the listing space and recommended the IPO to risk-tolerant investors.
On the second day of bidding, the subscription status was 11.41 times, and 4.28 times on the first day. Notably, many retail applicants used online platforms like Google Pay, Upstox, and Zerodha to submit bids, even during the SEBI holiday on May 23 for Buddh Purnima.
Awfis Space Solutions raised over ₹268 crore from anchor investors before the IPO. The offering allocated 15% for NIIs, 10% for retail investors, and 75% for QIBs. Employees received a discount of ₹36 per equity share, with a maximum reservation value of ₹2 crore.
Awfis Space Solutions offers flexible workspace solutions for various clients, from startups to international corporations. The company’s unique Managed Aggregation (MA) model distinguishes it from other firms in the sector, though comparisons have been made with unlisted entities like Tablespace, Cowrks, We Work, and Smartworks.
The IPO includes a fresh issue of ₹128 crore and an offer-for-sale (OFS) of up to 12,295,699 equity shares, valued at ₹599 crore. The promoters and selling shareholders include Peak XV Partners Investments V, Bisque Ltd, and Link Investment Trust.
Proceeds from the IPO will fund new center establishments (₹42.03 crore), working capital requirements (₹54.37 crore), and general corporate purposes. ICICI Securities Limited, Axis Capital Limited, IIFL Securities Ltd, and Emkay Global Financial Services Ltd are the lead managers for the IPO, with Bigshare Services Pvt Ltd as the registrar.
The grey market premium (GMP) for Awfis Space Solutions IPO stood at +118, indicating shares trading at a ₹118 premium. Based on the IPO price band and the current GMP, the expected listing price is around ₹501 per share, a 30.81% increase from the IPO price of ₹383. Researchers from investorgain.com anticipate a robust listing, with GMP movements over the past 13 sessions ranging from ₹0 to ₹165.
