Awfis Space Solutions IPO day 3: GMP, subscription status to review. Apply or not as bidding ends soon?

Awfis Space Solutions IPO day 3: The initial public offering (IPO) of Awfis Space Solutions Limited opened on 22nd May 2024. In the first two days of bidding, the public issue received an overwhelmingly positive response from the primary market investors, indicating a strong potential for the IPO. As per the Awfis Space Solutions IPO subscription status, the public issue has been booked 11.41 times in the first two days of bidding. Bidding for the public offer will end today evening. Hence, investors have just one day to apply for the mainboard IPO. Meanwhile, the grey market bias has further improved on the third day of Awfis Space Solutions IPO bidding. As per the market observers, Awfis Space Solutions IPO GMP (grey market today) is ₹120, ₹9 higher than Awfis Space Solutions IPO GMP of ₹111 on the weekend.

Awfis Space Solutions IPO GMP today

According to stock market observers, the Grey Market Premium (GMP) for the Awfis Space Solutions IPO today is ₹120, which is ₹9 higher than the weekend's GMP. The GMP, a key metric used in the grey market to indicate the potential listing price of an IPO, suggests that the IPO could list at a price higher than its issue price. Market observers attribute the rise in Awfis Space Solutions IPO GMP to the trend reversal in the secondary market. They note that despite weakness in global markets, the Indian stock market reached a new peak on Friday, sparking renewed interest in the grey market for the Awfis Space Solutions IPO.

Awfis Space Solutions IPO subscription status

By 2:57 PM on day 3 of bidding, Awfis Space Solutions IPO was booked 76.48 times, whereas its retail portion was booked 46.55 times. The NII segment of the book build issue was booked 110.78 times, while the QIB portion was subscribed 75.97 times.

Awfis Space Solutions IPO review

When it comes to the Awfis Space Solutions IPO, the expert consensus is clear. Anand Rathi's report states, "The company has a Price to Sales ratio of 4.9x of its FY23 earnings. The company has shifted to an asset-light model, which will show benefits in the coming period. The company has a large Total Addressable Market (TAM) driven by factors such as enterprise focus on flexibility, cost optimization, workforce fluidity, reverse migration, workplace evolution, focus on wellness, facilities, and amenities, as well as the growth of start-ups in Tier 1 and Tier 2 cities. We recommend a 'Subscribe – Long Term' rating for the IPO." This strong endorsement from a reputable source should give investors confidence in the IPO's potential.

Warwadi Shares and Finance has also given a 'buy' tag to the mainboard IPO, saying, "Considering the FY24 annualized EBITDA of 2,377 mn on a post-issue basis, the company is going to list at an EV/EBITDA of 11.25x with a market cap of Rs. 26,587 mn. There are no listed entities comparable with the company's business. We assign a 'Subscribe' rating to this IPO as the company has a leadership position in a large and growing marketplace and has diverse space sourcing & demand strategies. Also, it is available at reasonable valuations on an absolute basis." This detailed explanation of the 'buy' rating provides investors with a clear understanding of the brokerage's positive outlook on the IPO.

In addition to these brokerages, Ventura Securities and SMIFS have also given the public issue a 'buy' tag.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.