AWFIS SPACE SOLUTIONS IPO Review

Awfis Space Solutions Ltd. (ASSL) is India’s largest flexible workspace provider as of December 31, 2023, with 169 centers across 16 cities and 105,258 seats. The company has signed 13 more Letter of Intent for expansion and presence in the country. The company is backed by Amit Ramani who is also the Chairman and Managing Director of the Company. He has approximately 20 years of experience in the field of real estate and workplace solutions.

Revenue jumped from Rs. 257 Cr. in FY22 to Rs. 545.28 Cr. in FY23 showing growth of more than 112% and already clocked a revenue of Rs. 616 Crore in 9MFY24. The company has not turned profitable yet but the Losses decreased from Rs. 57 Cr. in FY22 to Rs. 46 Cr. in FY23 and further narrowed down to Rs. 18 Cr. in 9MFY24 and expected to turnaround in next financial year. The company is generating return of Capital Employed of 25.26%. WeWork, COWRKS, SMARTWORKS, TABLESPACE are the peers to the company. The Indian Office Market is expected to grow at 6.3% CAGR from 832 million sq ft. to 998 million sq ft. in FY26. The unorganised office market which is currently as big as organised office market at 600 to 730 million sq ft. will also see some shift towards organised office market. The Startup Ecosystem that is growing at rapid pace and the shift from Work from home culture to work from office will also push indian office market to grow further.

The Office market is grwoing fast and the company is performing better and expected to be profitable in FY25 and the Grey Market Premium(GMP) is also indicating a listing gain of 20% to 35%. Considering the Growth rate and Opportunity size of the market, The Risk taking Investor can apply for Listing gains and Investors can also wait for long term.