Awfis Space Solutions IPO opens today. Check GMP, subscription status, should you subscribe
- Awfis Space Solutions IPO price band is set at ₹364 to ₹383 per share. The IPO lot size is 39 shares and the minimum investment amount required by retail investors is ₹14,937.
Awfis Space Solutions IPO: The initial public offering (IPO) of workspace solutions provider Awfis Space Solutions opens today, May 22. The bidding for the Awfis Space Solutions IPO will end on Monday, May 27.
Awfis Space Solutions IPO price band is set at ₹364 to ₹383 per share. The IPO lot size is 39 shares and the minimum investment amount required by retail investors is ₹14,937.
At the upper end of the price band Awfis Space IPO size is worth ₹598.93 crore, which comprises a combination of fresh issue of 33 lakh equity shares aggregating to ₹128 crore and an offer for sale (OFS) component of 1.23 crore shares aggregating to ₹470.93 crore.
The company has already raised ₹268.62 crore from anchor investors on May 21 ahead of the IPO opening.
Awfis Space IPO allotment is expected to be finalized on May 28, and the listing date is May 30. The equity shares of Awfis Space Solutions will be listed on both the stock exchanges, BSE and NSE.
The company proposes to utilise the net issue proceeds for funding capital expenditure towards the establishment of new centres and working capital requirements.
ICICI Securities, Axis Capital, IIFL Securities and Emkay Global Financial Services are the book running lead managers of the Awfis Space Solutions IPO, while Bigshare Services Pvt Ltd is the IPO registrar.
Awfis Space Solutions IPO Subscription Status
Awfis Space Solutions IPO has been subscribed 5% so far on Wednesday, the first day of the bidding process. The issue received bids for 4.53 lakh equity shares as against 86.29 lakh shares on the offer, as per data available till 10:05 am.
The IPO has been subscribed 22% in the retail category and 5% in the Non-Institutional Investors (NII) category so far.
Awfis Space Solutions IPO GMP
Awfis Space Solutions IPO GMP today, or grey market premium today, is ₹165 per share, as per market observers. This indicates that the equity shares of Awfis Space Solutions are trading at ₹548 apiece in the grey market, a premium of 43% to the issue price of ₹383 per share.
Should you subscribe to Awfis Space IPO?
Awfis Space Solutions is the largest flexible workspace solutions company in India as of 9MFY24 providing solutions to small and medium enterprises (SMEs), based on the total number of centers.
Most analysts have recommended subscribing to the Awfis IPO on the back of its market leadership, high growth potential, strong financials and industry growth prospects.
“The company has a Price to Sales ratio of 4.9x of its FY23 earnings. It has shifted to an asset light model which will show benefits in the coming time 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 growth of start-ups in Tier 1 and Tier 2 cities. Looking at these factors we recommend a “Subscribe – Long Term” rating to the IPO,” brokerage firm Anand Rathi said.
According to Swastika Investmart, while Awfis Space Solutions exhibits promising top-line growth, achieving profitability remains a key challenge.
“Awfis has experienced negative cash flow in the past and operates in a highly competitive environment susceptible to macroeconomic fluctuations. Considering the potential for future growth balanced against the current financial situation and competitive landscape, we recommend a neutral stance on the Awfis IPO. Investors should conduct thorough due diligence and closely monitor the company's progress before making a final decision,” Swastika Investmart said.
Master Capital Services recommends investing in Awfis Space Solutions IPO for listing gains.
“Awfis Solutions plans on continuing to build an industry leading capital efficient model in order to keep hold of the market share and increase the percentage of operational centers and seats under the MA model. The company also intends to expand in new and existing markets by evaluating potential locations and cities based on multiple criteria. But the company has incurred losses in the past financial years. Investors looking to invest can invest for listing gains,” it said.
SMIFS also has a ‘Subscribe’ rating on Awfis Space IPO as it expects a strong double digit growth to continue in FY25 aided by strategic expansion plans.
“The company’s bottom line is also expected to improve in the coming quarters due to the company’s MA model which is reducing the capital expenditure per seat gradually for the company. We recommend a subscribe to the issue as a good long trem investment, given strong industry growth prospects, future growth from capex done and fresh post issue capex to be undertaken and the company having the leanest model within the industry,” SMIFS said.
Ventura Securities recommended subscribing to the Awfis Space IPO citing its market leadership and extensive presence, high growth potential in a booming market, innovative MA model for efficient operations, diversified supply and demand strategy and strong financial performance and future outlook.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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