Awfis Space Solutions IPO Bags 14% Premium On Listing
Expert suggests to ‘hold’ their position by keeping a stop loss at the issue price of Rs 383
Workspace solution provider Awfis Space Solutions initial public offering (IPO) welcomed on the street with nearly 14 per cent premium.
The stock listed with precisely 13.58 per cent premium at Rs 435 on the National Stock Exchange (NSE), whereas on the Bombay Stock Exchange (BSE) the issue debuted at Rs 432 against the issue price of Rs 383 with 12.86 per cent premium.
The IPO closed on 27 May and in its subscription phase, Awfis Space Solutions retail segment subscription stood at 53.23 times. While, the final subscription was recorded at 108.17 times, as per data by chittorgarh.
The Awfis Space Solutions Rs 598.93 crore IPO consisted of a fresh issue of shares worth Rs 128 crore and an offer-for-sale (OFS) of Rs 470.93 crore with a price band of Rs 364 to Rs 383 per share.
ICICI Securities, Axis Capital, IIFL Securities and Emkay Global Financial Services were the book running lead managers, while Bigshare Services was the registrar to the issue.
Analyst View
“The pre-listing gray market premium suggested a potentially higher listing gain, but it gradually declined in the days leading up to the listing, possibly reflecting a more cautious investor approach. While not explosive, Awfis Space Solutions' listing presents a decent starting point,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
The strong subscription highlights the attractiveness of the co-working space market, but the company's financial situation requires ongoing monitoring. Investors are suggested to ‘hold’ their position by keeping a stop loss at the issue price, advised Nyati.
IPO Objectives
The company proposed to utilise net proceeds of Rs 128 crore to fund the capital expenditure towards the establishment of new centers. The proceeds will also fulfill working capital requirements and the general corporate purposes.
Firm’s Financials
The firm registered revenue of Rs 565.79 crore in FY23, compared to Rs 278.72 crore in FY22. The firm’s loss reduced to Rs 46.64 crore in FY23 compared to Rs 57.16 crore loss in FY22. Overall, revenue and PAT increased by 103 per cent and 18.4 per cent respectively.
