Awfis Space Solutions Attracts Rs 268 Cr from Anchor Investors Pre-IPO

Awfis Space Solutions Ltd, a prominent operator in the co-working space sector, has successfully raised over Rs 268 crore from anchor investors just a day before its initial public offering (IPO) is set to open for public subscription. The company announced the allocation of 70.13 lakh equity shares to 32 funds at Rs 383 each, marking the upper limit of its price band. This move has resulted in a collection of Rs 268.61 crore for Awfis.

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Among the notable participants in this anchor round were leading financial institutions and mutual funds such as Goldman Sachs, EastBridge Capital Master Fund, HDFC Mutual Fund (MF), ICICI Prudential MF, Axis MF, UTI MF, Aditya Birla Sun Life Insurance Company, and SBI General Insurance Company. This diverse group of investors underscores the strong market confidence in Awfis's business model and growth prospects.

The upcoming IPO, scheduled to be open from May 22 to May 27, features a price band of Rs 364-383 per share. It comprises a fresh issue of shares amounting to Rs 128 crore and an offer for sale (OFS) of 1.23 crore shares, valued at Rs 471 crore at the higher end of the price band. The total size of the IPO thus stands at Rs 599 crore.

Significant shareholders including Peak XV Partners Investments V (formerly known as SCI Investments), Bisque Ltd, and Link Investment Trust are participating in the OFS. Currently, Peak XV holds a 22.86% stake in Awfis, with Bisque and Link Investment Trust owning 23.47% and 0.36% stakes respectively.

The proceeds from the fresh issue are earmarked for several key areas. These include funding capital expenditure for establishing new centres, supporting working capital requirements, and other general corporate purposes. Awfis is renowned for offering flexible workspace solutions that cater to a wide range of needs, from individual flexible desks to customized office spaces for corporates.

In terms of the IPO's structure, 75% has been reserved for qualified institutional bidders (QIBs), with non-institutional investors and retail investors allocated 15% and 10% respectively. Prospective investors have the option to bid for a minimum of 39 equity shares and thereafter in multiples of 39.

This strategic move by Awfis Space Solutions Ltd not only highlights its robust financial planning but also signifies its readiness to expand its footprint in the co-working space industry. With a strong backing from both domestic and international investors, Awfis is poised for further growth in this dynamic market segment.