AWFIS Space Solutions
Book Building issueMainboard₹599 Cr issue
+12.86%
Listing gain over issue price
Issue size
₹599 Cr
1 lot at cut-off
₹14,937
Lot size
39shares
Open
22 May 2024
Close
27 May 2024
Allotment
28 May 2024
Listing
30 May 2024
Listing performance
Issue price
₹383
Listed at
₹432.25
Listing-day close
₹421.75
Latest price
₹221.40
Close on 23 Oct 2026
Listing gain
+12.86%
Return since issue
-42.19%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 May 2024 – 27 May 2024
- Listing date
- 30 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹383 per share
- Lot size
- 39 shares
- Issue type
- Book Building issue
- Total issue size
- ₹599 Cr
- Market cap at offer price
- ₹2,659 Cr
- Promoter holding
- 39.56% → 28.56% pre-issue → post-issue
- ISIN
- INE108V01019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- C-28-29, Kissan Bhawan, Qutab Institutional Area, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 70,13,483 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 39 shares per lot, in multiples, at ₹383
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 39 | ₹14,937 |
| Retail (max) | 13 | 507 | ₹1,94,181 |
| S-HNI (min) | 14 | 546 | ₹2,09,118 |
| S-HNI (max) | 66 | 2,574 | ₹9,85,842 |
| B-HNI (min) | 67 | 2,613 | ₹10,00,779 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
70,13,483
Anchor portion
₹269 Cr
at ₹383 per share
Valuation and performance
Valuation at offer price
₹383 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Price to book (×) | 9.63 | — |
| Market cap | — | ₹2,659 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- −7.66%
- ROCE
- 37.43%
- Debt / equity
- 0.10
- PAT margin
- −2.99%
- NAV per share
- ₹39.79
- Price to book
- 9.63
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About AWFIS Space Solutions
Awfis Space Solutions Limited, incorporated on December 17, 2014, is a flexible workspace operator providing workspace solutions through multiple service models. The company generates revenue through leasing flexible workspaces—including dedicated desks, dedicated offices, and customized spaces—to clients across various industries, primarily information technology, professional services, and consumer services. As of December 31, 2023, Awfis operates 79,946 operational seats across 62 centers under the straight lease (SL) model and under the managed aggregation (MA) model where it partners with space owners. The company has grown revenue from ₹1,783.60 million in Fiscal 2021 to ₹5,452.82 million in Fiscal 2023, representing a CAGR of 74.85%, though it remains unprofitable with a restated loss of ₹189.42 million for the nine months ended December 31, 2023.
Company Analysis
from RHPAwfis is India's largest flexible workspace solutions provider, offering co-working spaces ranging from individual desks to customized offices for startups, SMEs, and large corporates across multiple cities.
Awfis Space Solutions Limited, incorporated on December 17, 2014, is a flexible workspace operator providing workspace solutions through multiple service models. The company generates revenue through leasing flexible workspaces—including dedicated desks, dedicated offices, and customized spaces—to clients across various industries, primarily information technology, professional services, and consumer services. As of December 31, 2023, Awfis operates 79,946 operational seats across 62 centers under the straight lease (SL) model and under the managed aggregation (MA) model where it partners with space owners. The company has grown revenue from ₹1,783.60 million in Fiscal 2021 to ₹5,452.82 million in Fiscal 2023, representing a CAGR of 74.85%, though it remains unprofitable with a restated loss of ₹189.42 million for the nine months ended December 31, 2023.
flexible workspacesreal estate servicesoffice space management
Objects of the Issue
- Funding capital expenditure towards establishment of new centers ₹420.30 million p.28
- Funding working capital requirements ₹543.70 million p.28
- General corporate purposes p.28
- Establishment of new centers (capital expenditure) p.49
- Working capital requirements p.49
- General corporate purposes p.49
- Funding capital expenditure towards establishment of new centers ₹ 420.30 million p.118
- Funding our working capital requirements ₹ 543.70 million p.118
- General corporate purposes p.118
- Funding capital expenditure towards establishment of new centers p.227
- Funding capital expenditure and security deposit costs towards establishment of new centers p.389
- Funding working capital requirements p.389
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹ 1,280.00 million
- Offer for Sale
- Up to 12,295,699 Equity Shares aggregating up to ₹ [●] million
- Price Band
- [●] per Equity Share (Floor Price to Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
Awfis generates revenue through flexible workspace solutions via two primary models: (1) the straight lease (SL) model where the company bears capital expenditure and operational costs, and (2) the managed aggregation (MA) model where it partners with space owners who bear a portion of capital expenditure, with revenue and profits shared according to pre-negotiated terms. Clients are billed based on the type of workspace (individual seats, dedicated offices, or customized spaces) and tenure of their agreements, which typically range from short-term (less than 12 months) to long-term (24 months or more).
Business Segments
Awfis bears capital expenditure and operational costs; operates 62 centers with 35,340 seats covering 33.57% of total seats as of December 31, 2023
Awfis partners with space owners who bear a portion of capital expenditure; revenue and profits are shared; 107 of 169 total centers based on this model as of December 31, 2023
Co-working space on rent and allied services
Facility management services including housekeeping, food and beverage, cleaning, and IT services
Construction and fit-out projects
Provides flexible workspace seats for lease to corporate, startup, and individual clients across multiple formats including Awfis (standard value format targeting value customers) and Awfis Gold (premium format for premium customer segment situated in Grade A buildings)
Provides design, fit-out, and operational services for workspace centers, particularly under the managed aggregation model where space owners and the company co-invest in capital expenditure
Lease of flexible workspace including flex workspaces, customized office spaces, mobility solutions, and allied services such as food and beverages, information technology support services, and infrastructure services
Design, build, maintain and manage flexible workspace requirements through Awfis Transform - construction and fit-out services business segment
Facility management services branded Awfis Care and other services including income from sale of furniture and work from home solutions
Provides flexible workspace solutions including co-working solutions (ready-to-move spaces available by day, week, month or year) and enterprise solutions (customized office setups for businesses), plus allied services such as food and beverage, IT services, mobility solutions (meeting rooms, day passes, virtual office).
Offers comprehensive design and build solutions for developing the company's centers and external commercial offices of clients. Provides quick and cost-effective transformations with focus on modern design and build practices.
Provides end-to-end property and facility management services across 22 cities including engineering maintenance and operation solutions, office management solutions (security, cleaning, housekeeping, landscaping), and business support solutions (cleaning, security, events, transportation management).
Revenue from rental services recognized on an accrual basis in accordance with contractual terms as the Group satisfies performance obligations by delivering services as per contractually agreed terms
Revenue from facility management services recognized monthly on accrual basis in accordance with agreement terms as and when services are rendered
Construction and fit-out projects where the Group acts as a contractor; revenue recognized per construction agreements using cost-based input method for performance obligations satisfied over time; loss recognized immediately if total project cost exceeds total revenues
Revenue from sale of furniture and work from home solutions recognized when control of ownership of goods passes to the buyer, usually on delivery
Revenue from sale of food items (goods) recognized on transfer of control of ownership of goods to buyer when no significant uncertainty exists regarding consideration amount
Provision of flexible co-working spaces on rent including desk arrangements, customized office spaces, and allied services such as food and beverages, IT support, and infrastructure services
Enterprise workspace designing and building services under the Awfis Transform brand
Facility management services through Awfis Care brand and other services
Providing co-working space on rent and allied services including virtual office, meeting rooms, day passes, alliances, in-center promotions and events, infrastructure and IT services
Design and construction of fit-out projects, delivered as completed office infrastructure
Facility management services, food and furniture sales, and miscellaneous services
SWOT Analysis
Strengths
- • Largest flexible workspace provider in India by center count(p.27)
- • Strong revenue growth trajectory(p.38)
- • Diversified client base across sectors(p.27)
- • Significant scale in operational infrastructure(p.38)
- • Positive operating cash flows(p.37)
- • Leading position in managed aggregation model(p.42)
- • Market leadership with significant operational scale and presence(p.120)
- • Strong revenue growth trajectory with positive operational momentum(p.138)
- • Improved occupancy rates demonstrating operational effectiveness(p.139)
- • Positive EBITDA and improving cash generation despite ongoing losses(p.138)
- • Strong net cash position with negative net debt(p.138)
- • Largest flexible workspace operator in India by number of centers with 169 operational centers across 16 cities as of December 31, 2023(p.208)
- • Leadership in Tier 2 expansion with largest flexible workspace footprint among top 5 operators(p.222)
- • Asset-light MA model with significantly lower capex per seat (₹50,000) versus industry average (₹80,000-₹200,000)(p.222)
- • High occupancy rate of 75.10% and strong rental income growth (CAGR 74.85% FY2021-2023)(p.224)
- • Diverse clientele with 68.57% large corporates/MNCs, low top client concentration (4.63%), and high NPS of 70%(p.222)
- • Presence in maximum number of micro-markets (52) among top 5 operators enabling multi-location client needs(p.214)
- • Strong ROCE improvement from 10.88% (FY2021) to 49.91% (9M FY2024) and low debt with net debt negative ₹682.56 million(p.225)
- • Established MA model with significant operational scale and capital efficiency(p.226)
- • Optimized mid-size center format driving operational efficiency and community engagement(p.226)
- • Diversified vendor base enabling scale economies and supply chain resilience(p.234)
- • Strong occupancy growth demonstrating market demand validation(p.231)
- • Skilled project management and design team enabling quality execution(p.234)
- • Tech-enabled operations platform for efficiency and customer experience(p.239)
- • ISO-certified facility management services with pan-India presence(p.229)
- • Largest flexible workspace operator in India by center count(p.370)
- • Ranked #1 among top 5 flexible workspace players with largest micromarket presence(p.370)
- • Significant operational scale and geographic diversification(p.370)
- • Strong client base with increasing tenure and repeat business(p.372)
- • Improved occupancy levels and operational efficiency(p.371)
- • Asset-light business model enabling rapid expansion with low capital investment(p.373)
- • Diversified revenue streams beyond core co-working(p.372)
- • Strong ROCE improvement trajectory(p.374)
- • Growing operational footprint with 21 new centers and 12,406 seats added in 9M FY2024(p.382)
- • Significant revenue growth from construction and fit-out projects, expanding 115.51% YoY in FY2023(p.383)
- • Strong occupancy rate improvement to 74.98% in FY2023 from 63.05% in FY2022(p.383)
- • Positive operating cash flow generation of ₹1,951.88 million in FY2023, despite operating losses(p.387)
- • Diversification into allied services with food sales growing 356.49% YoY in FY2023(p.383)
Weaknesses
- • Persistent history of net losses and negative profitability(p.36)
- • High dependence on short-term client agreements(p.39)
- • Significant capital expenditure requirements and capital intensity(p.45)
- • Concentration risk in top clients(p.44)
- • Geographic concentration risk(p.44)
- • Minimum guarantee obligations under MA model(p.41)
- • Risk of space owner agreement terminations(p.40)
- • Non-ownership of leased premises exposes company to termination and relocation risks(p.47)
- • Operational risks inherent in service delivery including health, safety, and hygiene standards(p.47)
- • Dependence on third-party contractors for construction and fit-out with associated cost and quality risks(p.48)
- • Lease of registered and corporate office expiring in 2027 creates operational disruption risk(p.48)
- • Company involved in multiple legal proceedings with material liabilities and penalties at risk(p.50)
- • High attrition rates in Awfis Care vertical (32.85% as of Dec 2023) increase training and recruitment costs(p.56)
- • Fixed operational costs cannot be easily reduced during periods of low demand(p.55)
- • Significant delays in payment of statutory dues including provident fund and TDS in the past(p.54)
- • Recurring operating losses and negative profitability despite revenue growth(p.138)
- • Negative return on net worth indicating inefficient capital deployment(p.135)
- • Significant working capital requirements due to business model characteristics(p.128)
- • Asset-liability mismatch on security deposits creating liquidity pressure(p.129)
- • Concentration risk with limited comparable business models in the market(p.135)
- • Cumulative net losses of ₹1,064.35 million from FY2021-FY2023 with restated loss of ₹189.42 million in 9M FY2024(p.225)
- • High dependence on construction and fit-out services revenue which grew 11.6x from ₹114.86 million to ₹1,050.18 million, representing execution and timing risk(p.210)
- • Majority of centers (51.48%) sourced from non-developer space owners (HNIs, family offices) with less institutional support and higher fragmentation risk(p.212)
- • 67.23% of portfolio under MA model creates dependency on profit/revenue sharing arrangements with 45.88% average minimum guarantee versus micro-market rental(p.216)
- • High attrition rate in facility management workforce affecting service continuity(p.240)
- • Dependence on capital expenditure sharing with space owners under MA model(p.232)
- • Complex project management with potential execution risks(p.234)
- • Continuous operating losses and negative equity trajectory(p.303)
- • Negative working capital position(p.303)
- • Persistent unprofitability across all historical periods(p.303)
- • High dependence on lease liabilities(p.296)
- • No dividend payment history(p.285)
- • Consistent operating losses over multiple fiscal years(p.369)
- • Negative cumulative retained earnings indicating historical losses(p.334)
- • High finance costs including substantial lease-related interest expenses(p.340)
- • Significant lease obligations and operating leverage(p.356)
- • High capital expenditure requirements for expansion(p.371)
- • Initial ramp-up losses in new centers with extended payback periods(p.371)
- • Concentration risk with top customers comprising significant revenue portion(p.349)
- • Persistent operating losses of ₹466.37 million in FY2023 and ₹189.42 million in 9M FY2024(p.382)
- • High depreciation and amortization expense at ₹1,499.79 million (26.51% of revenue) in FY2023(p.384)
- • Significant finance costs of ₹727.21 million (12.85% of revenue) in FY2023 driven by lease obligations(p.384)
- • Heavy capital expenditure requirement of ₹1,637.97 million in FY2023 for expansion(p.389)
- • Declining cash and cash equivalents from ₹371.49 million in FY2023 to ₹85.95 million by 9M FY2024(p.387)
- • Top 10 receivables concentration at 29% of outstanding receivables as of December 31, 2023(p.390)
Opportunities
- • Expanding flexible workspace market in India(p.27)
- • Growth of flexible workspace adoption among large enterprises(p.27)
- • Network expansion opportunities(p.28)
- • Scaling the asset-light MA model(p.41)
- • Significant India office real estate growth provides market tailwind(p.27)
- • Flexible workspace industry experiencing growth in India creating expansion opportunities(p.60)
- • Construction and fit-out services (Awfis Transform) expanding as percentage of revenue(p.59)
- • Large and growing flexible workspace market driven by startup ecosystem expansion(p.154)
- • India's strong economic growth and services sector expansion supporting office demand(p.149)
- • Expansion of office market with projected growth through 2026(p.156)
- • Increasing urbanization and rising middle class creating sustained office demand(p.150)
- • Strong foreign institutional investment in Indian office sector supporting growth(p.152)
- • Government infrastructure initiatives supporting commercial real estate expansion(p.153)
- • Massive TAM of ₹474-592 billion (282 million sq. ft.) by 2026 with flexible workspace segment expected to reach 15.5% penetration(p.221)
- • Flex workspace segment projected to grow at CAGR of 18-19% in Tier 1 cities (2022-2026) with total supply reaching 105 million sq. ft.(p.222)
- • Tier 2 cities emerging as next growth frontier with 5.7 million sq. ft. expected to grow 1.7x to 8.5-9 million sq. ft. by 2026 with lower competitive intensity(p.211)
- • Expansion opportunity into 3 additional Tier 2 cities by FY2025 to strengthen regional presence in nascent markets(p.222)
- • Growing demand from large enterprises/corporates with over 100 seat cohorts increasing from 49.67% (FY2021) to 56.50% (9M FY2024) supporting premium Awfis Gold offering(p.219)
- • Significant opportunity in unorganized/Grade B office market representing ~600-730 million sq. ft. where institutional ownership is only 26%(p.212)
- • Expansion into underserved Tier-2 cities with growing flex workspace demand(p.227)
- • Structural growth in flexible workspace adoption post-COVID hybrid work trends(p.227)
- • Revenue diversification through Awfis Transform and Awfis Care service expansion(p.227)
- • Market consolidation opportunity with fragmented competitive landscape(p.242)
- • Large unorganized commercial office stock available for formalization(p.242)
- • Multiple revenue streams from workspace solutions(p.299)
- • Growth in construction and fit-out projects revenue(p.294)
- • Expansion of rental workspace operations(p.293)
- • Expansion into adjacent high-margin services (Awfis Transform and Awfis Care)(p.372)
- • Geographic expansion to new cities and micromarkets(p.370)
- • Growing flexible workspace market in India with increasing corporate adoption(p.370)
- • Scale-up of construction and fit-out services business segment(p.372)
- • Continued improvement in occupancy rates and pricing power(p.372)
- • Leverage of managed aggregation model for asset-light expansion(p.373)
- • Expansion of co-working footprint with plans to establish 21 new centers in 9M FY2024(p.382)
- • Growing construction and fit-out project pipeline, delivering 267,627 sq. ft. in 9M FY2024(p.382)
- • Expansion of allied services including virtual office, IT services, and day passes(p.382)
- • Monetization opportunity from increased physical occupancy driving higher ancillary service uptake(p.383)
Threats
- • Macroeconomic sensitivity and economic contraction risk(p.39)
- • High concentration in IT industry client base(p.39)
- • Intense competitive pressures in the market(p.44)
- • Client churn and termination risks(p.40)
- • Rapid growth management challenges(p.38)
- • Real estate market and space owner relationship risks(p.47)
- • Uncertainty regarding past COVID-19 pandemic benefits sustainability(p.38)
- • Regulatory non-compliance and permit renewal failures could disrupt business operations(p.52)
- • Space owners' default on loan obligations could result in property repossession and center closure(p.47)
- • Debt covenants restrict operational flexibility and could trigger default and acceleration of repayment(p.56)
- • COVID-19 pandemic has materially impacted business with ongoing economic uncertainty(p.59)
- • Competition from broker channels could commoditize pricing and reduce profitability(p.57)
- • Information technology system failures could disrupt operations and expose sensitive data(p.57)
- • Unfavorable changes in Indian tax laws could materially impact tax position and cash flows(p.69)
- • Economic slowdown in India could reduce demand for flexible workspace solutions(p.68)
- • Competition from other flexible workspace operators and traditional office leasing(p.135)
- • Economic slowdown and office market cyclicality affecting demand(p.149)
- • High vacancy rates in certain office markets limiting expansion opportunities(p.156)
- • Rising lease rental costs and landlord cost pressures impacting margins(p.121)
- • Dependence on contract retention with large clients and customer concentration risk(p.129)
- • Intense competitive landscape with 430+ flexible workspace operators in India, top 10 accounting for 60% of market, reducing differentiation advantage(p.189)
- • High market concentration risk with only 32% flexible workspace stock concentrated in Bengaluru alone (19.7 Mn sq. ft. of 62 Mn total)(p.173)
- • Economic cyclicality and potential reversal of hybrid working trends post-COVID-19 could impact occupancy rates and rental realizations(p.157)
- • Dependence on IT/Technology sector which accounted for 39% of seats in FY2023 creates sector concentration and cyclicality risk(p.176)
- • Commercial real estate market volatility with office vacancy levels ranging 15.5%-38.1% across cities and limited rental growth during 2020-21(p.157)
- • Supply-demand imbalance risk with projected 55 million sq. ft. annual office addition expected during 2024-2026 potentially depressing rentals(p.194)
- • Significant competitive pressures from established and new operators(p.242)
- • Exposure to economic cycles affecting corporate occupancy and flex space adoption(p.227)
- • Dependence on space owner partnerships and potential unfavorable lease terms(p.232)
- • Insurance coverage gaps for operational and catastrophic risks(p.242)
- • Significant operating expense burden from finance costs(p.294)
- • High depreciation and amortization burden(p.294)
- • Dependence on lease arrangements for operational capacity(p.293)
- • Concentration of equity shareholding(p.333)
- • Risk of dividend non-payment and capital constraints(p.285)
- • Cyclical and volatile flexible workspace market demand(p.371)
- • Intense competition from other flexible workspace operators(p.372)
- • Dependence on real estate market dynamics and space availability(p.371)
- • Fixed lease obligations limiting flexibility in economic downturns(p.373)
- • Exposure to economic slowdown affecting client spending and occupancy(p.372)
- • Remote work trends potentially reducing demand for flexible workspace(p.370)
- • Rising operational costs including employee benefits and facility management(p.374)
- • Significant minimum guarantee commitments under MA model arrangements(p.371)
- • Significant tax disputes and claims totaling ₹924.42 million (23 cases) with GST demand of ₹181.87 million pending(p.399)
- • Income tax proceedings with demand of ₹757.93 million for assessment year 2019-2020 under reopening notice(p.397)
- • Heavy lease liability obligations with variable rate borrowings of ₹232.31 million as of December 31, 2023(p.390)
- • Material litigation against company including property-related disputes with claims up to ₹64.37 million(p.399)
- • Exposure to cyclical demand for flexible workspace and sensitivity to economic downturns(p.391)
- • Dependence on lease agreements with property owners and concentration risk in operational locations(p.389)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Amit Ramani | Individual Promoter | 18.19% | — |
| Peak XV Partners Investments V (formerly known as SCI Investments V) | Promoter Selling Shareholder | 22.86% | — |
| Amit Ramani | Promoter/Individual Promoter | — | — |
| Peak XV | Promoter Selling Shareholder | — | — |
| Amit Ramani | Promoter | 18.19% | — |
| Peak XV Partners Investments V | Promoter | 22.86% | — |
| Amit Ramani | Individual Promoter | 18.19% | — |
| Peak XV Partners Investments V (formerly known as SCI Investments V) | Promoter | 22.86% | — |
| Amit Ramani | Promoter | 39.16% | 63.23% |
| Peak XV Partners Investments V (Formerly known as SCI Investments V) | Promoter Group | 8.09% | 12.09% |
| Peak XV Partners Investments V (Formerly known as SCI Investments V) | Promoter Group | — | — |
| Bisque Limited | Promoter Group | — | — |
| Link Investment Trust | Promoter Group | — | — |
| Amit Ramani | Individual Promoter/Director | — | — |
Leadership
Amit Ramani · Chairman and Managing Director
Ravi Dugar · Chief Financial Officer
Amit Kumar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
AWFIS Space Solutions IPO FAQs
What is the lot size of AWFIS Space Solutions IPO?
The minimum lot size of AWFIS Space Solutions IPO is 39 shares. One lot costs ₹14,937 at the cut-off price.
When does AWFIS Space Solutions IPO open and close?
AWFIS Space Solutions IPO opened for subscription on 22 May 2024 and closed on 27 May 2024.
What is the listing date of AWFIS Space Solutions IPO?
AWFIS Space Solutions IPO listed on 30 May 2024.