Kontor Space
Fixed Price issueSME₹15.62 Cr issue
+31.18%
Listing gain over issue price
Issue size
₹15.62 Cr
1 lot at cut-off
₹1,11,600
Lot size
1,200shares
Open
27 Sep 2023
Close
03 Oct 2023
Allotment
05 Oct 2023
Listing
10 Oct 2023
Listing performance
Issue price
₹93
Listed at
₹122
Listing-day close
₹115.90
Latest price
₹52.90
Close on 23 Oct 2026
Listing gain
+31.18%
Return since issue
-43.12%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Sep 2023 – 03 Oct 2023
- Listing date
- 10 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹93 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹15.62 Cr
- Market cap at offer price
- ₹57.47 Cr
- Promoter holding
- 98.20% → 71.50% pre-issue → post-issue
- ISIN
- INE0KZ301010
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Srujan Alpha Capital Advisors LLP
- Registered office
- Office No.A1 & B1, 9th Floor, Ashar IT Park Road No.16 Z, Wagle Industrial Estate, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 86,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹93
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,11,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,23,200 |
| S-HNI (max) | 8 | 9,600 | ₹8,92,800 |
| B-HNI (min) | 9 | 10,800 | ₹10,04,400 |
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.
Valuation and performance
Valuation at offer price
₹93 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 9.46 | — |
| P/E (×) | 9.83 | — |
| Market cap | — | ₹57.47 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 40.82%
- ROCE
- 31.19%
- Debt / equity
- 1.19
- PAT margin
- 20.68%
- NAV per share
- ₹18.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kontor Space
Kontor Space Limited, incorporated in January 2018 and converted to a public company in July 2023, operates a co-working business providing managed commercial spaces. The company rents and manages office premises that it customizes and sub-rents to clients ranging from small-scale startups to large conglomerates. With technological expertise and allied business services, Kontor Space aims to foster collaboration and productivity by offering flexibility, convenience, and quality at competitive prices. Currently operating four centers in Maharashtra (Thane, Pune, Fort, and Bandra Kurla Complex), the company generates revenue from rental agreements with clients who typically hold short to medium-term commitments.
Company Analysis
from RHPKontor Space Limited provides co-working spaces through 'space-as-a-service' model, offering flexible commercial office solutions to startups and enterprises across Maharashtra.
Kontor Space Limited, incorporated in January 2018 and converted to a public company in July 2023, operates a co-working business providing managed commercial spaces. The company rents and manages office premises that it customizes and sub-rents to clients ranging from small-scale startups to large conglomerates. With technological expertise and allied business services, Kontor Space aims to foster collaboration and productivity by offering flexibility, convenience, and quality at competitive prices. Currently operating four centers in Maharashtra (Thane, Pune, Fort, and Bandra Kurla Complex), the company generates revenue from rental agreements with clients who typically hold short to medium-term commitments.
co-working spacesflexible office solutionscommercial real estate servicesspace-as-a-service
Objects of the Issue
- To make the payment of Rental Deposits for new co-working centres ₹238.81 lakhs p.21
- To carry out the Capital Expenditure for fit outs of new co-working centres ₹966.82 lakhs p.21
- General Corporate Purpose ₹356.77 lakhs p.21
- To make the payment of Rental Deposits of new co-working centers ₹238.81 Lakhs p.75
- To carry out the Capital Expenditure for fit outs of new co-working centers ₹966.82 Lakhs p.75
- General Corporate Purpose ₹296.52 Lakhs p.75
Issue Structure
- Total Issue
- ₹1,562.40 Lakhs (Up to 16,80,000 Equity Shares)
- Fresh Issue
- Up to 16,80,000 Equity Shares of face value of ₹10/- each at ₹93/- per share aggregating ₹1,562.40 Lakhs
- Offer for Sale
- NIL (Not Applicable as the entire issue constitutes fresh issue of equity shares)
- Price Band
- ₹93/- per Equity Share (Fixed Price Issue)
- Lot Size
- 1,200 Equity Shares (minimum trading lot size on NSE EMERGE)
- Face Value
- ₹10/- per Equity Share
Business Model
Kontor Space operates on a rental and sub-rental model: it enters into leave-and-license agreements with property owners, customizes the premises with fit-outs to create work stations and amenities, and then sub-rents individual workstations and office spaces to end clients through service agreements. Revenue is generated from monthly rental payments by clients using the co-working spaces, with the company earning the spread between property rental costs and client rental revenues.
Business Segments
Provides managed commercial office spaces through leave-and-license agreements with property owners, customized with fit-outs and rented to multiple clients
Provides shared and dedicated office spaces including executive cabins, flexible desks, dedicated offices, meeting rooms, conference rooms, and virtual offices with amenities such as high-speed internet, 24/7 access, cafes, and business support services
Renting and managing commercial spaces including shared work space, co-working workspace, business centre services, office solutions, personal workstations, meeting rooms, conference rooms, virtual office
Provide incubation services, business planning services, formulating market strategies, providing full support in operationalizing business plans, including team building, providing strategic and operational guidance, marketing, promotion, training and development programmes to entrepreneurs
Create web and mobile applications for commercial office space use and provide a web-based platform for just in time space reservations for co-working, meeting rooms, conference rooms, offices, desks, business centers
SWOT Analysis
Strengths
- • Space-as-a-service model with technological expertise and competitive pricing(p.2)
- • Strong revenue growth trajectory(p.21)
- • Return to profitability with positive PAT(p.21)
- • Improvement in net worth position(p.21)
- • Established brand with strong reputation in co-working services(p.112)
- • Asset-light business model enabling flexibility and cost-efficiency(p.112)
- • Economical pricing strategy aligned with competitive market positioning(p.112)
- • Flexible contract terms enabling scalability for diverse client needs(p.112)
- • Strategic geographic locations in high-demand business districts(p.113)
- • Experienced management team with deep real estate and operations expertise(p.114)
- • Strong financial performance with rapid revenue and profitability growth(p.114)
- • Diversified client base with mix of corporates and startups providing revenue stability(p.114)
- • Diversified and stable client base reducing churn risk(p.165)
- • Strong revenue growth acceleration(p.190)
- • Improved profitability with 40.82% return on equity(p.182)
- • Strategic multi-city presence in high-demand locations(p.165)
- • Strong operational efficiency with 43.05% EBITDA margin(p.187)
- • 100% underwritten IPO with lead manager commitment exceeding 15%(p.205)
- • Compulsory market making for three years from listing(p.205)
- • No prior investor complaints in three years(p.211)
- • Fully dematerialized share structure(p.204)
- • No material regulatory or disciplinary action in past three years(p.205)
Weaknesses
- • Limited operating history with difficulty assessing future prospects(p.27)
- • History of accumulated losses in prior years(p.27)
- • High concentration of revenues from few major clients per location(p.27)
- • Significant indebtedness exposure(p.29)
- • Lack of ownership of most operating locations(p.32)
- • Deficiencies in regulatory filings and compliance history(p.33)
- • Educational qualifications of key management not verifiable(p.36)
- • No independent appraisal of Objects of the Issue(p.40)
- • Promoter concentration with 98.18% shareholding(p.38)
- • Limited operational footprint with only 4 existing centers across single state(p.111)
- • Heavy dependence on key customers with concentrated revenue base(p.120)
- • Small employee base relative to expansion ambitions creates execution risk(p.119)
- • Lack of any special tax benefits available to company or shareholders(p.90)
- • High debt-to-equity ratio of 1.19 indicating leverage risk(p.185)
- • Concentration of ownership with single promoter holding 98.15%(p.170)
- • Large unsecured loan exposure of Rs. 489.83 lakhs with pending charge registration(p.171)
- • Delayed fitout execution at Fort Mumbai center impacting revenue(p.128)
- • Very recent management transition and key personnel appointments(p.150)
- • Dependence on lead manager for market making obligations(p.205)
- • Limited liquid trading lot size of 1,200 shares(p.215)
- • Minimum 50 allottees requirement or entire IPO refund(p.205)
- • No existing listed subsidiaries or established market track record(p.209)
Opportunities
- • Rapid growth in global and Indian co-working markets(p.20)
- • Expansion into new locations with IPO proceeds(p.28)
- • Allocation of IPO proceeds for capital expenditure and deposits(p.21)
- • Strategic focus on underserved market segments(p.20)
- • Rapid expansion into new geographies with growing co-working demand across India(p.114)
- • Growth in enterprise adoption of flexible workspace solutions beyond startups(p.94)
- • Expanding Indian co-working market projected to grow 7% CAGR through 2028(p.101)
- • Increasing SME and startup ecosystem adoption of co-working models in India(p.104)
- • Penetration of flex workspaces in tier-2 and tier-3 cities remains underpenetrated(p.102)
- • Post-COVID structural shift to hybrid work models driving sustained demand(p.97)
- • Expansion to new geographies with planned BKC Mumbai center of 120 seats(p.128)
- • Growth in startup ecosystem and demand for flexible workspaces(p.201)
- • Leverage technology for platform-based workspace solutions(p.127)
- • Expansion of incubation and business support services(p.127)
- • Strong operating cash flow of Rs. 346.69 lakhs enabling organic growth(p.164)
- • Potential migration to NSE main board upon meeting capital threshold(p.218)
- • Access to broader investor base through SME Exchange platform(p.204)
- • Facilitating capital raising through future issues(p.254)
Threats
- • COVID-19 pandemic impact on business operations and workspace demand(p.27)
- • Intense competition from organized and unorganized players(p.36)
- • Upward-only rent escalations in lease renewals(p.31)
- • Mismatch between short-term client agreements and long-term lease commitments(p.31)
- • Regulatory and statutory compliance risks(p.29)
- • Geographical concentration risk in Maharashtra(p.29)
- • Natural calamities and external shocks impact(p.46)
- • Reliance on third-party service providers for operations(p.37)
- • Lack of insurance coverage for business locations(p.38)
- • Intense competition from larger, consolidated players with multi-city presence(p.120)
- • Industry consolidation trend favors large operators controlling 76% of market seats(p.105)
- • Cyclical nature of startup ecosystem and economic sensitivity to downturns(p.114)
- • Rental market volatility and landlord relationship risks affecting profitability(p.77)
- • Regulatory uncertainty in labour and employment laws may increase compliance costs(p.125)
- • Global economic slowdown and geopolitical risks impacting business growth(p.92)
- • Dependence on operating in real estate sector subject to economic cyclicality(p.188)
- • Significant exposure to rent expense representing 30.18% of revenue(p.177)
- • Interest rate sensitivity with borrowing at 11.85% LTRR-linked rates(p.184)
- • Regulatory and compliance risks including pending tax demands and labor law compliance(p.198)
- • Competition from established co-working operators and rising property costs(p.188)
- • Listing contingent on stock exchange approval which can be withdrawn(p.208)
- • Interest penalty of 15% per annum for delayed allotment or refund(p.251)
- • Regulatory risk through SEBI amendments and future circulars(p.213)
- • Foreign investment restrictions for entities from border-sharing countries(p.255)
- • SEBI disclaimer absolves regulator of financial soundness responsibility(p.206)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Kanak Mangal | Promoter | 98.15% | — |
| Mrs. Neha Mittal | Promoter | 0.03% | — |
| Ms. Sneha Agrawal | Promoter Group | 0.03% | — |
| Mr. Kanak Mangal | Promoter | 98.15% | 71.47% |
| Mrs. Neha Mittal | Promoter | 0.03% | 0.02% |
| Ms. Sneha Agrawal | Promoter Group | 0.03% | 0.02% |
| Mr. Kanak Mangal | Promoter/Chairman & Whole-Time Director | 98.15% | — |
| Mrs. Neha Mittal | Promoter/Non-Executive Director | 0.03% | — |
| Ms. Shaily Prince Goyal | First Director | — | — |
| Ms. Princy Prince Goyal | First Director | — | — |
| Mr. Kanak Mangal | Party to Share Purchase Agreement | — | — |
Leadership
Mr. Kanak Mangal · Chairman & Whole-time Director
Ms. Kanan Kapur · Managing Director
Mrs. Neha Mittal · Non-Executive Director
Mr. Jasraj · Chief Financial Officer
Mrs. Anamika Talesara · Company Secretary & 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.
Kontor Space IPO FAQs
What is the lot size of Kontor Space IPO?
The minimum lot size of Kontor Space IPO is 1,200 shares. One lot costs ₹1,11,600 at the cut-off price.
When does Kontor Space IPO open and close?
Kontor Space IPO opened for subscription on 27 Sep 2023 and closed on 03 Oct 2023.
What is the listing date of Kontor Space IPO?
Kontor Space IPO listed on 10 Oct 2023.