Awfis Space Solutions IPO: All You Need To Know

Awfis Space Solutions Ltd.'s three-day initial public offering will open for subscription on May 22. The IPO, which aims to raise Rs 598.93 crore, consists of a fresh issue of equity shares, aggregating Rs 128 crore, and an offer-for-sale of up to 1.23 crore equity shares aggregating to Rs 470.93 crore by certain shareholders.

The flexible workspace solutions company announced a price range of Rs 364–383 per equity share for the IPO. The bidding for anchor investors will open for a day on May 21.

The minimum lot size for an application is 39 shares and the company will be listed on the National Stock Exchange and the BSE. The allotment of the issue will be finalised on Tuesday, May 28. Here are the steps to check Awfis Space Solutions IPO allotment status on the IPO registrar website.

ICICI Securities Ltd., Axis Capital Ltd., IIFL Securities Ltd. and Emkay Global Financial Services Ltd. are the book-running lead managers for the issue.

The company will use about Rs 42.03 crore from the proceeds for funding capital expenditure towards the establishment of new centres.

Meanwhile, Rs 54.37 crore will be used for funding working capital requirements and general corporate purposes.

Awfis provides flexible workspace solutions, ranging from individual flexible desk needs to customised office spaces for startups, small and medium enterprises, as well as for large corporates and multi-national corporations.

The company has 169 total centers across 16 cities in India, with 1,05,258 total seats and total chargeable area of 5.33 million square feet. Of this, 31 centers and 25,312 seats are under fit-out with chargeable area aggregating to 1.23 million square feet.

Fit-out spaces refers to centres where the company has entered into binding lease or operating arrangements with space owners, have paid the security deposit to the space owners, or the ones under progress which are not yet ready for clients to use.

The company’s flexible workspace solutions cater to varied seat cohorts, ranging from a single seat to multiple seats, which can be contracted by the clients for a period ranging from one hour to several years.

The company has differentiated models for sourcing and procuring workspace, which includes SL (Straight Lease) model and the MA (Managed Aggregation) model.

The company has increased its focus on the lower-risk, asset light MA model and as of Dec. 31, 2023, 66.43% of its centers are under the MA model, based on total seats.

• The company has a history of net loss, negative earnings per share and return on net worth. It needs to generate and sustain increased revenues while managing expenses to achieve profitability.

• The company has experienced negative cash flows in previous fiscals and may continue to have negative cash flows in the future.

• Any slowdown in the global economy or India’s economic growth, or the information technology industry in India, could affect the overall business environment and specifically demand for flexible workspaces, leading to a decrease in demand for its solutions for prolonged periods.

• The company faces significant competitive pressures in its business. Its inability to compete effectively would affect its business prospects for future growth.

• The company has substantial capital expenditure and working capital requirements and may require additional financing to meet those requirements, which could have a material adverse effect on its results of operations, cash flows and financial condition.