Shares of Awfis Space Solutions will be listed today. The company has fixed the price at ₹383, at the upper end of the price band ₹364-383.
The initial public offering of co-working space operator Awfis Space Solutions was subscribed 108.17 times, largely due to institutional investors’ heavy participation.
The ₹599-crore IPO received bids for 93.34 crore shares against 86.29 crore shares.
The portion reserved for non-institutional investors was subscribed 129.27 times subscription while the category for qualified institutional buyers by 116.95 times and retail investors 53.23 times.
According to Prashanth Tapse, Mehta Equities, Awfis Space Solutions received an overwhelming response on the last day of the issue from all types of investors despite knowing a complicated business model and continuing to have negative cash flows at present as well as in the future.
“While the demand has come due to its first of its kind businesses getting into listing space and early mover advantage to grab the investors opportunity, hence the company may command listing gains,” he said, adding that considering the strong subscription demand, it is indicating a good room for healthy listing gain in the range of 25-30 per cent.
The initial public offer (IPO) of fresh issue of up to ₹128 crore and offer for sale of up to 1,22,95,699 equity shares.
Awfis Space Solutions had raised a little over ₹268 crore from anchor investors, including Ashoka Whiteoak, HDFC Mutual Fund, Nippon Life India, Axis Mutual Fund, Canara Rebeco Mutual Fund, Motilal Oswal, Goldman Sachs, Allianz Global Investors Fund, and HSBC.
Proceeds from the fresh issue will be used to fund capital expenditures for setting up new centres, supporting working capital requirements, and general corporate purposes.
Awfis provides flexible workspace solutions, from individual flexible desk needs to customised corporate office spaces.
Axis Capital, Emkay Global Financial Services, ICICI Securities and IIFL Securities are the managers of the offer.
“We believe the healthy listing is justified on the back of the company’s ranking no 1 among the top 5 benchmarked players in India in the flexible workspace segment. ranked no 1 among the top 5 benchmarked players in India in the flexible workspace segment,” he said.
Despite challenges, management is confident the company can turn positive net cash by the next fiscal year. “They anticipate bright prospects ahead, driven by the significant demand and supply gap in the flexible workspace segment in which Awfis operates,” he said.