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Awfis Sets Price Band Of INR 364-INR 383 For INR 599 Cr IPO

Awfis Sets Price Band Of INR 364-INR 383 For INR 599 Cr IPO
SUMMARY

Its IPO comprises a fresh issue of shares worth INR 128 Cr and an offer for sale (OFS) component of up to 1.23 Cr shares

The startup is expected to raise INR 599 Cr at the upper end of the price band through its public issue

Bids for the IPO can be made for a minimum of 39 equity shares and in multiples of 39

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Coworking startup Awfis has set a price band of INR 364-INR 383 for its upcoming initial public offering (IPO).

Its IPO comprises a fresh issue of shares worth INR 128 Cr and an offer for sale (OFS) component of up to 1.23 Cr shares. 

The startup is expected to raise INR 599 Cr at the upper end of the price band through its public issue.

Bids for the IPO can be made for a minimum of 39 equity shares and in multiples of 39. 

Awfis had filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December last year. As per the draft filing, the fresh issue was INR 160 Cr, and the OFS component was of 1 Cr shares.

Awfis’s IPO will open on May 22 and close on May 27. The startup will allocate shares to anchor investors on May 21.

Explaining the reason behind the change in the issue component, the company said at its IPO conference, “Promoters have to maintain a minimum 20% of the post-issue capital as lock-in for around 18 months. At the previous number, it was getting breached, so we had to reduce the primary component to maintain that 20% for 18 months.”

In fact, as per Awfis’s red herring prospectus, the selling shareholders have increased the number shares they were looking to sell. 

At 6.6 Mn, Peak XV Partners is looking to sell the highest number of shares. Bisque Limited will sell up to 5.5 Mn shares via the OFS, and Link Investment Trust will offload up to 85,000 shares.

Founded in 2015 by Amit Ramani, Awfis has evolved from just being a coworking network to a tech-enabled workspace solutions platform, catering to freelancers, startups, SMEs, large corporates, and MNCs. 

After the IPO, the stake held by Peak XV would be in the range of 10%-11% in the company, Awfis said.

In the IPO, at least 75% of the net offer will be allocated to qualified institutional buyers (QIBs), 15% to non-institutional bidders, and 10% to retail investors.

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