Awfis files DRHP; Peak XV to offload 32.7% of its holding

Awfis Space Solutions Limited (Awfis) has filed its draft red herring prospectus (DRHP) with the Security Exchange Board of India (SEBI) for an initial public offering (IPO).

The firm has proposed to raise funds through a fresh issue of equity shares aggregating up to Rs 160 crore and an offer for sale (OFS) of up to 10,023,172 equity shares.

Peak XV Partners Investments V will divest 5,011,586 equity shares, while Bisque Limited will offload 4,936,412 equity shares. Link Investment Trust will be selling 75,174 equity shares in the OFS.

The fresh issue and OFS will be allotted at a face value of Rs 10 while the price band and the minimum lot band will be decided by the company in consultation with the book-running lead managers shortly.

The company proposes to utilize the primary proceeds for funding capital expenditure towards the establishment of new centers, working capital requirements, and general corporate purposes.

According to the DRHP, Bisque Ltd controls the largest holding in the firm with a 23.47% stake followed by Peak XV with a 22.86% share. Awfis founder and CEO Amit Ramani commands 18.19% of the company. QRG Investments and VBAP Holdings make it to the top five with 9.58% and 9.35% shares, respectively. VC investor Ashish Kacholia has 5.1% of the company.

ICICI Securities, Axis Capital, IIFL Securities, and Emkay Global Financial are the book-running lead managers of the issue.

Founded in 2015, Awfis offers a range of flexible workspace solutions, including customized office spaces for startups, SMEs, and large corporations. The company also provides allied services, including food and beverages, IT support, and infrastructure services such as storage and customization, along with event hosting and meeting arrangements.

The company last raised  Rs 15 crore ($1.8 million approximately) as a part of Series E round in December 2021. The company has raised close to $100 million to date, according to data intelligence platform TheKredible.

Awfis’s revenue from operations surged 2.1X to Rs 545 crore during the fiscal year ending March 2023 as compared to Rs 257 crore in FY22. However, the losses of the firm declined by 18.67% to Rs 46.6 crore in FY23. It also shared quarterly results for April-June 24, wherein the revenue stood at Rs 187.7 crore while losses stood at Rs 8.3 crore.