SUMMARY
As per a SEBI notification, Awfis was issued the observation letter by the markets regulator on April 16, while TBO Tek’s observation letter was issued on April 15
Awfis filed its DRHP with SEBI in December last year, which comprises a fresh issue of INR 160 Cr and an OFS component of up to 1 Cr shares
TBO Tek's IPO comprises a fresh issue of shares up to INR 400 Cr and an OFS component of 1.56 Cr equity shares.
In another testament to the increased activities in the domestic initial public offering (IPO) market, two new-age tech startups – Peak XV-backed coworking space provider awfis
and B2B travel portal Travel Boutique Online or TBO Tek – have received a go-ahead for their respective IPOs from the Securities and Exchange Board of India (SEBI).
As per a SEBI notification, Awfis was issued the observation letter by the markets regulator on April 16, while TBO Tek’s observation letter was issued on April 15.
It is pertinent to note that after a lull in the IPO market in 2022 and early 2023, which made multiple new-age tech startups stall their IPO plans, the activities to go public picked their pace by mid-last year.
Riding the wave, Awfis filed its draft red herring prospectus (DRHP) with SEBI in December last year. The startup’s IPO comprises a fresh issue of INR 160 Cr and an offer-for-sale (OFS) component of up to 1 Cr shares.
ICICI Securities, Axis Capital, IIFL Securities and Emkay Global Financial Services are the book runners to the issue.
As per its DRHP, Awfis plans to utilise INR 52.5 Cr from the net proceeds in setting up new coworking setups. It plans to open 15 new centres under the ‘Awfis’ format in FY25, in Mumbai, Bengaluru, the National Capital Region of Delhi, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad, Lucknow, Bhubaneswar and Jaipur.
The rest of the net proceeds amounting to INR 68 Cr would be utilised as working capital, its DRHP said.
On the other hand, 2006-founded B2B travel platform TBO Tek filed its DRHP with the markets regulator in November last year.
The company’s IPO comprises a fresh issue of shares up to INR 400 Cr and an OFS component of 1.56 Cr equity shares.
As per the company’s DRHP, TBO Tek aims to use the net proceeds from the fresh issue towards growing its platform by adding new buyers and suppliers, unidentified inorganic acquisitions, and general corporate purposes.
Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited, and JM Financial Limited are the lead book runners to TBO Tek’s IPO.
We must note that at least 10 tech startups are expected to get listed in 2024, which includes heavyweights like Swiggy (with an expected INR 8,300 Cr IPO), Ola Electric (INR 7,250 Cr IPO), as well as OYO, Go Digit, ixigo, and MobiKwik.
As per SEBI’s latest notification, OYO’s DRHP is still in its pre-filing stage with the last clarification sought or response received on January 5, 2024. The last clarification sought or response received pertaining to Ola Electric’s DRHP was earlier this month, on April 8.
On the other hand, Snapdeal-backed SaaS startup Unicommerce, which filed its DRHP with SEBI in January this year, is still awaiting an in-principal approval from the regulator.
