The highly anticipated initial public offering (IPO) of coworking space provider Awfis witnessed an exceptional response from investors, with the issue oversubscribed a staggering 108.56 times on the final day of bidding.
Strong Investor Interest
According to data from the BSE, the IPO garnered bids for 93.68 Cr shares against the 86.29 Lakh shares available for subscription. Qualified institutional buyers (QIBs) led the charge, oversubscribing their portion by 116 times. Non-institutional investors (NIIs) followed closely behind, oversubscribing their share by 129.8 times. Retail investors also demonstrated keen interest, with their portion oversubscribed 54.58 times. Additionally, shares reserved for employees saw robust demand, oversubscribed 25.2 times.
Offer Details
Awfis aimed to raise INR 599 Cr through the public offering at a price band of INR 364 to INR 383 per share. The IPO comprised a fresh issue of shares worth INR 128 Cr and an offer for sale (OFS) component of up to 1.23 Cr shares, with Peak XV Partners and Bisque Limited among the selling shareholders.
Company Overview
Founded in 2015 by Amit Ramani, Awfis has evolved into a tech-enabled workspace solutions platform, catering to a diverse clientele ranging from freelancers and startups to large corporates and MNCs.
Financial Performance
For the first nine months of FY24, Awfis reported a net loss of INR 18.9 Cr. However, its net loss for FY23 decreased by over 18% to INR 46.6 Cr compared to INR 57.1 Cr in FY22.
Utilization of Funds
With plans to utilize INR 52.5 Cr from the IPO proceeds to establish new coworking setups, Awfis aims to open 15 new centers in FY25 across key cities such as Mumbai, Bengaluru, Delhi NCR, and Hyderabad, among others.
Industry Trends
Awfis’ successful IPO comes amid a flurry of public listings in the tech sector, with companies like Ola Electric, FirstCry, and Swiggy also eyeing public offerings in 2024.
