Flexible workspace solutions startup Awfis files DRHP with SEBI to raise funds via IPO; Know the details

Delhi-based workspace solutions startup Awfis Space Solutions has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds via IPO.

According to DRHP, The company's IPO consists of a fresh issue of equity shares worth up to Rs 160 crore and an Offer for Sale (OFS) of up to 10,023,172 equity shares.

Details of the OFS

The OFS will enable the company's shareholders to divest their stakes. Peak XV Partners Investments V plans to sell 5,011,586 equity shares, Bisque Limited will offload 4,936,412 shares, and Link Investment Trust will part with 75,174 shares.

The face value of these shares is pegged at Rs 10, but the price band and minimum lot size will be determined in consultation with the book-running lead managers.

How will the raised proceeds be utilized?

According to Awfis, The primary objective of raising capital through this IPO is to fund various corporate activities. The company intends to use the proceeds from the fresh issue for capital expenditure related to establishing new centres, supporting working capital requirements, and other general corporate purposes.

Company's financial health

As of June 30, 2023, Awfis stands as India's largest flexible workspace solutions provider based on the total number of centres, as per a CBRE report. The company's revenue surged to Rs 545 crore in the fiscal year ending March 2023, a significant increase from Rs 257 crore in FY22. 

Notably, the company reported a decline in losses by 18.67% to Rs 46.6 crore in FY23.

Awfis, founded in 2015, is led by CEO Amit Ramani, who holds an 18.19% stake in the company. Other major stakeholders include Bisque Ltd, with a 23.47% share, Peak XV holding 22.86%, and investors like QRG Investments and VBAP Holdings.

The IPO is managed by book-running lead managers ICICI Securities, Axis Capital, IIFL Securities, and Emkay Global Financial Services.

While Ola Electric has filed DRHP with SEBI, there is a also a report that omnichannel retailer FirstCry will be filing IPO papers with SEBI by the end of this month.

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