Awfis Space IPO Sees Exceptional Demand, Oversubscribed 108 Times

The initial public offering (IPO) of Awfis Space Solutions, a prominent co-working space firm, has received an overwhelming response, with the issue being oversubscribed 108.56 times on the final day of bidding, Monday, May 27, as per BSE data.

The IPO, which opened for subscription on Wednesday, May 22, received bids for 93,68,22,510 shares against the 86,29,670 shares offered. The retail investor segment saw a subscription of 54.58 times, while non-institutional investors subscribed 129.81 times. The quota for qualified institutional buyers (QIBs) was subscribed 116.95 times, and the employee portion was booked 25.20 times.

Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities noted the positive market response despite the company’s potential for future negative cash flows and its complex business model. He highlighted Awfis Space’s early mover advantage and unique entry into the listing space, recommending it to risk-taking investors for potential listing gains.

The subscription status of the IPO was 11.41 times on Friday, the second day of bidding, and 4.28 times on the first day. Despite a bank holiday and SEBI being closed on Thursday, May 23, due to Buddh Purnima, retail investors actively participated, using platforms like Google Pay, Upstox, and Zerodha.

Awfis Space Solutions raised over ₹268 crore from anchor investors. The offer reserved 15% of the net issue for non-institutional investors, 10% for retail investors, and 75% for QIBs via the book-building process. Employees participating in the reserved section were eligible for a ₹36 discount per equity share, with a maximum reservation value of ₹2 crore.

Awfis Space Solutions provides various flexible workspace options for startups, SMEs, large organizations, and international corporations. The company claims that its Managed Aggregation (MA) model is unique in the listed space, although parallels can be drawn with unlisted firms like Tablespace, Cowrks, We Work, and Smartworks.

The IPO size comprises a fresh issue of ₹128 crore and an offer-for-sale (OFS) of up to 12,295,699 equity shares. Peak XV Partners Investments V (formerly known as SCI Investments V) is offloading up to 6,615,586 equity shares, Bisque Ltd is selling up to 5,594,912 shares, and Link Investment Trust is divesting up to 85,201 shares. The total IPO size is valued at ₹599 crore.

The net proceeds will be used for capital expenditure to establish new centers (₹42.03 crore), working capital requirements (₹54.37 crore), and general corporate purposes.

The book-running lead managers for the IPO are ICICI Securities Limited, Axis Capital Limited, IIFL Securities Ltd, and Emkay Global Financial Services Ltd, with Bigshare Services Pvt Ltd serving as the registrar.

As of today, the grey market premium (GMP) for Awfis Space Solutions IPO is +₹118, indicating that shares were trading at a premium of ₹118 in the grey market. Considering the upper end of the IPO price band, the expected listing price is projected to be ₹501 per share, representing a 30.81% premium over the IPO price of ₹383.

Grey market activity over the last 13 sessions shows a steady upward trend, suggesting a robust listing is anticipated. The lowest GMP recorded was ₹0, and the highest was ₹165, reflecting investors’ willingness to pay a premium over the issue price.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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