Awfis Receives SEBI Approval for IPO Launch
Awfis Space Solutions, a leading office-sharing company, has officially gained approval from the Securities and Exchange Board of India (SEBI) for its approaching initial public offering (IPO). The firm plans to generate capital through a fresh issue worth Rs 160 crore alongside an offer-for-sale of 10 million shares. This strategic move aims at further strengthening Awfis’ position in the coworking space sector.
This announcement follows recent news where WeWork Inc, the global giant in coworking spaces, disclosed its exit from Indian operations by selling its 27% stake in the local branch. This divestiture is part of a larger secondary deal poised to hit around Rs 1,200 crore, marking a significant shuffle within the industry.
Among the major shareholders looking to part ways with their investments in Awfis via the IPO are Peak XV Partners (formerly Sequoia Capital India), Bisque Ltd (a ChrysCapital entity), and Link Investment Trust. Peak XV Partners is set to offload more than five million shares, reducing its holding which currently stands at a 22.9% stake or 15 million shares. Similarly, Bisque Ltd intends to sell a relevant portion of its 23.5% shareholding, while Link Investment Trust will offer over 75,000 shares for sale.
The founder and CEO of Awfis, Amit Ramani, who stands firm with an 18.2% stake in the company, has positioned Awfis as a significant contender in the coworking industry. With a valuation circling around $110 million in its last funding round in 2022, Awfis is on a robust growth trajectory.
Awfis’ ambitious plans for the net proceeds from its IPO primarily focus on expansion efforts. The firm envisions establishing new centers across various locations, catering to the growing demand for flexible working spaces. Additionally, the funds will address working capital necessities and support general corporate objectives, underlining Awfis’ commitment to solidifying its market presence and operational capacity.
The financial performance of Awfis further demonstrates its strong market position and operational resilience. By the close of the fiscal year on March 31, 2023, the company reported a remarkable operating revenue of Rs 545 crore. This figure significantly improved from Rs 257 crore recorded in the previous fiscal year. Moreover, for the initial quarter of FY2024, Awfis has already projected operating revenue of Rs 188 crore, showcasing the company’s ability to sustain growth and navigate market dynamics effectively.
Despite the challenging conditions imposed by the COVID-19 pandemic, which saw a reduction in operating revenue to Rs 178 crore in FY21 from Rs 226 crore in FY20, Awfis has rebounded with commendable resilience and strategic pivots. The upcoming IPO represents not just a financial milestone for Awfis but also underscores the burgeoning demand and potential within the coworking space industry in India.
As Awfis gears up for its IPO launch, the market anticipates how this move will reshape the contours of the office-sharing ecosystem and fuel further innovations and expansions in this sector. The company’s proven track record, coupled with its strategic vision, sets a promising stage for its next phase of growth and industry leadership.
