[Update] DevX IPO: Issue Oversubscribed 16X On Day 2

Update | September 11, 18:11

Coworking space provider DevX’s IPO was oversubscribed 16X at the end of the second day of bidding, with retail investors leading the pack. Retail investors bid for 13.64 Cr shares against a total offering of 23 Lakh shares, translating to almost 60X subscription. 

Employees bid for 10 Lakh shares against 1.6 Lakh shares reserved for them.

The portion reserved for non-institutional investors was subscribed 15.36X, receiving bids for 5.29 Cr shares against 34.5 Lakh shares on offer. Despite a relatively lukewarm response from qualified institutional buyers, their portion was subscribed 2.4X. They bid for 1.65 Cr shares against 69.01 Lakh shares on offer.

Original | September 11, 12:54

After ending the first day of its IPO with an oversubscription of 5.3X, driven primarily by retail investors, coworking space provider DevX’s public issue gained further momentum on the second day of bidding. 

The issue was oversubscribed 9.4X as of 11:54. The IPO received bids for 12 Cr shares against 1.31 Cr shares on offer. 

The retail category saw the highest subscription at 37X, receiving bids for 8.52 Cr shares against 23 Lakh shares on offer. It was followed by the portion reserved for non-institutional investors (NIIs), with 8.2X oversubscription. The NIIs bid for 2.91 Cr shares compared to 34.50 Lakh shares reserved for them. 

Qualified institutional buyers (QIBs) showed a relatively muted response, bidding for 80 Lakh shares against 69 Lakh shares on offer. The QIB portion was subscribed 1.1X. 

Employees bid for 6.8 Lakh shares compared to 1.6 Lakh shares offered, resulting in 4.1X subscription. 

DevX’s IPO solely comprises a fresh issue of up to 2.35 Cr shares. The company has set a price band of INR 56 to INR 61 for the public issue. At the upper end of the price band, it would  raise INR 143.3 Cr from the IPO and would be valued at INR 550.1 Cr (about $62 Mn). 

Earlier this week, DevX raised INR 63.2 Cr from anchor investors. The public issue will close tomorrow and its shares are expected to list on the stock exchanges on September 17.

Founded in 2017 by Parth Shah, Rushit Shah and Umesh Uttamchandani, DevX provides managed office spaces, coworking spaces, designing services, among others. It claims to be one of the largest flex space operators in terms of stock in tier II cities in the country. 

From its IPO proceeds, DevX plans to deploy INR 73.1 Cr for fit-outs of four new centres in Surat, Pune, Ahmedabad, and its first international centre in Sydney. Besides, INR 35 Cr will be allocated for repayment or pre-payments of certain borrowings and the remainder for general corporate purposes. 

Post its public market debut, the Ahmedabad-based company will become the fourth listed coworking space provider after Awfis, Smartworks and IndiQube. 

On the financial front, DevX recorded a 3X jump in its net profit to INR 1.7 Cr in FY25 from INR 43.3 Lakh in the previous fiscal year. Its operating revenue zoomed 47% to INR 158.9 Cr from INR 108.1 Cr in FY24.