SUMMARY
- Ahmedabad-based coworking space provider DevX (Dev Accelerator Ltd) has submitted its DRHP with SEBI.
- The startup intends to offer a fresh issue of 2.47 crore equity shares in its IPO.
- These shares will be made available on the NSE and the BSE.
Ahmedabad-based coworking space provider DevX (Dev Accelerator Ltd) has submitted its draft red herring prospectus (DRHP) to the Securities and Exchanges Board of India (SEBI).
The startup intends to offer a fresh issue of 2.47 crore equity shares in its initial public offering (IPO). These shares will be made available on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
DevX aims to utilise the funds from this IPO to expand its coworking space network. The startup plans to deploy the proceeds for various purposes, including the renovation and security deposits for new locations, to pay for “fit-outs” in its new centres, repayment and prepayment of certain loans, including the redemption of non-convertible debentures (NCDs), and general corporate activities.
DevX intends to utilize Rs 68.95 crore for the renovation and security deposits of new centers. Of the IPO funds, Rs 30 crore are planned to be used for the repayment and prepayment of NCDs. General corporate will also be allocated a portion.
Earlier this month, it was reported that DevX is considering raising Rs 125 crore from its public offering.
The startup plans to open new coworking spaces in cities such as Mumbai, Gurugram, Noida, Pune, Chennai, GIFT City, Ahmedabad, Vadodara, Rajkot, Surat, Goa, and Jaipur over the next three years.
According to the draft red herring prospectus, DevX achieved profitability in FY24, posting a PAT of Rs 43.7 Lakh. This marked a turnaround from the loss of Rs 12.8 crore in FY23. The company’s revenue from operations increased by 55% from Rs 69.91 crore in FY23 to Rs 108.08 crore in FY24.
Established in 2017 by Parth Shah, Rushit Shah, and Umesh Uttamchandani, DevX offers a range of coworking space solutions, managed office spaces, workspace solutions, among others.
The company has a list of prominent clients including Zomato, WhiteOak, Tim Hortons, Hitachi, Darwinbox, among others.
In February 2024, DevX raised $7 million (Rs 58 crore) through a combination of debt and equity. It is supported by a group of investors including Kalpesh Harakhchand Gala, Unmaj Corporation, Bidiwala Family Office, among others.
At present, DevX operates over 25 centers across more than 10 cities in India, including Ahmedabad, Vadodara, Bengaluru, Delhi, Kochi, Surat, among others.
With this, DevX has become the third coworking space startup to head towards going public this year. While Awfis was the first to list earlier this year, Smartworks has also filed for an IPO. Additionally, another coworking space startup, IndiQube, is expected to file for an IPO soon.
