Office sharing startup Awfis Space Solutions unveiled the price range for its initial public offering (IPO), set at Rs 364 to Rs 383 per share. The IPO is scheduled to launch on May 22, with a total offering size ranging from Rs 576 to Rs 599 crore.
At the higher end of the price range, this values the company at approximately Rs 2,659 crore (equivalent to around $318 million based on current exchange rates). Awfis previously raised funds in 2022, garnering a valuation of $110 million.
Investors can bid for a maximum of 39 equity shares and in multiples of 55 shares thereafter.
The shares of the Delhi-based firm will commence trading on the stock exchanges on May 30.
With the IPO, the company seeks to raise Rs 128 crore in fresh capital. Additionally, the offer for sale (OFS) component will feature 12.3 million shares offered for sale by investors Peak XV Partners and private equity firm ChrysCapital. Peak XV Partners is a promoter entity of the company.
Awfis will additionally hold a pre-IPO round with anchor investors, with bidding scheduled for May 21.
According to the company, 75% of the offering is allocated for qualified institutional bidders (QIBs), 15% for non-institutional investors, and 10% for retail investors.
On Wednesday, the company announced a reduction in the size of its fresh offering while increasing the OFS component. Initially, it aimed for a fresh issue of Rs 160 crore, with investors intending to sell 10 million shares.
Under the revised plan, Peak XV Partners will now sell up to 6.6 million shares, while Bisque, a unit of ChrysCapital, will sell 5.6 million shares. Real estate investment trust Link Investment Trust will sell 85,201 shares.
As per the red herring prospectus filed by Awfis, its operating revenue for the nine months ended December 2023 and totaled Rs 616 crore. Moreover, for FY23, the company’s operating revenue surged, more than doubling from FY22 to Rs 545 crore.
However, Awfis continues to face losses. During the April-December 2023 period, the company reported a loss of Rs 18.9 crore after tax. Additionally, for FY23, its net loss amounted to Rs 46.6 crore, compared with Rs 57.3 crore in FY22.
The company intends to utilize the net proceeds from the fresh issue of shares for expansion and establishing new centers, meeting working capital requirements, and general corporate purposes.
