Awfis Space Solutions IPO
Awfis Space Solutions Limited
Awfis Space Solutions IPO Details
IPO Open
22 May 2024
IPO Close
27 May 2024
Price Band
₹364 – ₹383
Issue Size
₹598.93 Cr
Listing on
BSE, NSE
Min. Lot Size
39
Face value
₹10
GMP
₹70
Awfis Space Solutions IPO Timeline
IPO Open
22 May 2024
IPO Close
27 May 2024
Allotment
28 May 2024
Refund initiation
29 May 2024
Demat transfer
29 May 2024
Listing
30 May 2024
Key Performance Indicators
Book Value
-57.65
Debt/Equity
0.1
P/BV
9.63
RoNW
-7.66%
ROCE
37.43%
Net Profit Margin (%)
-8.49
About Awfis Space Solutions Limited
Awfis Space Solutions Limited is the frontrunner in India’s flexible workspace solutions market, established in December 2014. Awfis has carved a niche by catering to a diverse clientele.
Here’s a breakdown of their core offerings and target audience:
Core Business Activities: Awfis goes beyond just coworking spaces. They provide a spectrum of solutions, including private offices for established businesses seeking dedicated space, virtual offices for a professional business address without the physical overhead, and meeting rooms for professionals on the go.
Target Customers: This flexibility in workspace solutions allows Awfis to target a wide range of clients. From individual freelancers and startups needing a single workstation to large corporations and MNCs requiring multiple seats or customized office spaces, Awfis caters to all.
Market Leadership: As of December 2023, Awfis boasts India’s most extensive network of flexible workspaces. This widespread presence allows them to cater to a geographically diverse clientele and offer a solution for almost any workspace need.
Amenities and Services: Awfis goes beyond just providing space. Their centers are equipped with high-speed Wi-Fi, meeting rooms with video conferencing facilities, on-site cafes for convenient refreshment breaks, and event spaces for hosting client meetings or networking functions.
Number of Cities and Centres: As of December 2023, Awfis boasts India’s most extensive network of flexible workspaces. They are present in 16 cities and have over 160 centres across India
Total Seating Capacity: They have a seating capacity of around 1 lakh.
About Awfis Space Solutions IPO
Awfis Space Solutions, India’s flexible workspace leader, is launching an IPO for ₹598.93 crore. Awfis Space Solutions IPO price band ranges from ₹364 to ₹383 (face value ₹10) with a minimum investment of ₹14,937 (39 shares). Subscriptions open May 22nd and close May 27th. Awfis Space Solutions IPO listing date is on May 30th on BSE & NSE around. Bigshare Services Pvt Ltd is the registrar, while ICICI Securities, Axis Capital, IIFL Securities, and Emkay Global Financial Services are the BRLMs.
Awfis Space Solutions IPO issue details
- Issue Type: Book Built Issue IPO
- Issue Size: ₹598.93 Crore (combination of fresh issue and offer for sale)
- Price Band: ₹364 – ₹383 per share
- Face Value: ₹10 per share
- Minimum Lot Size: 39 Shares
- Minimum Investment: ₹14,937 (39 Shares * ₹383)
IPO Timeline:
- Subscription: 22nd May 2024 – 27th May 2024 (closes)
- Allotment (Tentative): 28th May 2024
- Listing (Tentative): 30th May 2024 (on BSE & NSE)
Additional Information:
- Registrar: Bigshare Services Pvt Ltd
- Book Running Lead Managers (BRLM): ICICI Securities Limited, Axis Capital Limited, IIFL Securities Ltd, and Emkay Global Financial Services Ltd
Industry Overview
The Indian flexible workspace sector is experiencing a boom, driven by changing work preferences and the rise of startups and agile businesses. Here’s a deep analysis of the industry:
Market Size and Growth:
- Current Market Size: Estimated at USD 2.15 billion in 2024, with a projected growth of 7.05% to reach USD 3.04 billion by 2029.
- Growth Trajectory: Forecasted to reach a market potential of USD 9 billion by 2028, with a CAGR of approximately 15%.
Market Leaders:
- Awfis Space Solutions: Currently holds the most extensive network of flexible workspaces in India.
- WeWork India: A major global player with a significant presence in India.
- Smartworks: Another leading Indian operator known for its focus on technology-enabled workspaces.
- Other Major Players: Regus, Innov8, CoWrks, and iLabs.
Challenges:
- Competition: The market is becoming increasingly competitive, putting pressure on margins and requiring continuous innovation.
- Lease Renewals and Real Estate Costs: Fluctuations in commercial real estate prices and lease renewal terms can impact profitability.
- Building Brand Awareness: Newer players need to establish themselves and build brand recognition to compete with established names.
- Infrastructure and Amenities: Providing high-quality infrastructure and amenities across locations is crucial to attract and retain clients.
- Work-from-Home Culture: The rise of the WFH culture presents a significant challenge. Many companies are re-evaluating their office space needs as employees demonstrate productivity while working remotely. This can lead to a decrease in demand for traditional office space and potentially flexible workspace solutions as well.
Opportunities:
- Rising Demand from Startups and SMEs: The growing number of startups and SMEs seeking flexible work options presents a significant opportunity.
- Tier-2 and Tier-3 City Expansion: Demand for flexible workspaces is rising in smaller cities beyond metros, offering growth potential.
- Hybrid Work Model Adoption: The increasing popularity of hybrid work models further fuels demand for flexible workspace solutions.
- Technology Integration: Integrating advanced technologies like AI and automation can enhance productivity and user experience.
Future Growth:
- Increased penetration in Tier-2 and Tier-3 cities
- Emergence of niche players catering to specific industries or requirements.
- Focus on building communities and fostering collaboration within workspaces.
- Expansion of managed office solutions catering to larger corporations.
- Integration of sustainability practices in workspace design and operations.
Overall, the Indian flexible workspace sector offers promising growth prospects due to the changing work landscape and increasing demand for flexible options. However, navigating the competitive environment and addressing challenges will be crucial for sustained success in this dynamic market.
Peer Analysis
Here’s a comprehensive peer analysis comparing the top players in India’s flexible workspace market:
1. Market Presence:
- Awfis Space Solutions: Most Extensive Network
- WeWork: Strong presence in major cities
- Smartworks: Growing Network
- CoWrks: Established presence in key cities
- Innov8: Strong presence in metros and Tier-2 cities
2. Workspace Solutions:
- Awfis Space Solutions: Coworking, Private Offices, Virtual Offices, Meeting Rooms
- WeWork: Coworking, Private Offices, Hot Desks, Dedicated Desks
- Smartworks: Coworking, Private Offices, Managed Offices, Instant Offices
- CoWrks: Coworking, Private Offices, Meeting Rooms, Dedicated Desks
- 91springboard: Coworking, Private Offices, Managed Offices, Day Offices
3. Target Clientele:
- Awfis Space Solutions: Startups, SMEs, Freelancers, Enterprises
- WeWork: Startups, MNCs, Enterprises
- Smartworks: Startups, SMEs, Enterprises
- CoWrks: Startups, SMEs, Freelancers
4. Technology Integration:
- Awfis Space Solutions: Integrates technology for space management, booking, and member engagement
- WeWork: Extensive use of technology for access control, space management, community building
- Smartworks: Integrates technology for space management, booking, and member engagement
- CoWrks: Integrates technology for space management, booking
- BHIVE: Known for using technology for space optimization and member experience
5. Unique Selling Proposition (USP):
- Awfis Space Solutions: Widespread network, catering to diverse workspace needs
- WeWork: Global brand recognition, focus on innovation
- Smartworks: Customization, managed office solutions
- CoWrks: Vibrant community focus, networking events
- InstaOffice: Focus on customized workspace solutions and high-end amenities
6. Strengths:
- Awfis Space Solutions: Extensive network, diverse workspace solutions, strong brand recognition
- WeWork: Global network, experience, strong community focus
- Smartworks: Customization options, managed office solutions
- CoWrks: Established brand, community events
Awfis Space Solutions IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not More than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
Awfis Space Solutions IPO Lot Size
| Application | Lots | Shares | Amount | |
|---|---|---|---|---|
| Retail (Min) | 1 | 39 | ₹14,937 | |
| Retail (Max) | 13 | 507 | ₹194,181 | |
| S-HNI (Min) | 14 | 546 | ₹209,118 | |
| S-HNI (Max) | 66 | 2,574 | ₹985,842 | |
| B-HNI (Min) | 67 | 2,613 | ₹1,000,779 |
Financials of Awfis Space Solutions Limited
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 930.61 | 559.69 | 508.58 |
| Revenue | 565.79 | 278.72 | 216.02 |
| Profit After Tax | -46.64 | -57.16 | -42.64 |
| Net Worth | 169.36 | 94.72 | 150.75 |
| Reserves and Surplus | -204.30 | -223.37 | -167.12 |
| Total Borrowing | 10.92 | 12.11 | 2.97 |
- Assets: A significant increase of ₹370.92 crore (72.7%) indicates expansion and investment in infrastructure or business acquisitions.
- Revenue: Revenue has doubled, reflecting a growth of ₹287.07 crore (103.3%). This suggests strong business growth and customer acquisition.
- Profit After Tax: Awfis continues to make losses, with a net loss of ₹46.64 crore in Mar 2023 compared to ₹57.16 crore in Mar 2022. However, the decrease in loss (18.4%) indicates an improvement in profitability.
- Net Worth: There’s been a positive increase in net worth (equity + reserves) of ₹74.64 crore (78.7%). This signifies a stronger financial position.
- Reserves and Surplus: A decrease in reserves suggests the company might be using these funds to finance growth initiatives or cover operational expenses.
- Total Borrowing: Minimal change in total borrowings indicates cautious debt management.
Objective of Awfis Space Solutions IPO
- Accelerate Network Expansion: The IPO proceeds will fuel the establishment of new centers across India, expanding Awfis’ reach and catering to the growing demand for flexible workspace solutions. This will solidify their position as a national leader in the market.
- Enhance Operational Efficiency: The raised capital will be used to fund working capital requirements. This ensures smooth day-to-day operations, optimizes resource allocation, and potentially allows for investments in technology and automation to improve efficiency.
- Unlock Strategic Growth Opportunities: A portion of the IPO proceeds will be allocated for general corporate purposes. This empowers Awfis to pursue strategic initiatives like potential acquisitions, partnerships, or investments in emerging technologies that can further their business model and drive future growth.
FAQ's on Awfis Space Solutions IPO
Awfis Space Solutions IPO issue size is ₹598.93 crore.
The price band for Awfis Space Solutions IPO is ₹364 – ₹383 per share.
It’s important to note that GMP is an unofficial estimate and not an indicator of the final allotment price. As of today (May 19, 2024), the reported GMP for Awfis Space Solutions IPO is ₹70.
he tentative listing date for Awfis Space Solutions IPO is expected to be around May 30th, 2024, on both BSE and NSE.
The minimum lot size for retail investors in Awfis Space Solutions IPO is 39 shares.
The subscription window for Awfis Space Solutions IPO opens on May 22nd, 2024.
The subscription window for Awfis Space Solutions IPO closes on May 27th, 2024.
You can check your allotment status for Awfis Space Solutions IPO after the allotment date by contacting your broker or through the online portal of the registrar (Bigshare Services Pvt Ltd) once available.
If your application for Awfis Space Solutions IPO isn’t allotted any shares, the funds you invested will be refunded to your bank account within a few days.
Yes, like any investment, there are risks associated with investing in Awfis Space Solutions IPO. Some potential risks include market fluctuations, the company’s financial performance, and competition in the flexible workspace sector.
