SEBI Returns Coworking Space Provider DevX’s IPO Papers

Market regulator Securities and Exchanges Board of India (SEBI) has returned the draft red herring prospectus (DRHP) of managed office space provider DevX (Dev Accelerator Ltd).

As per the information available on SEBI’s website, the regulator returned the draft papers on February 5. It didn’t mention the reason for returning the DRHP. Inc42 has reached out to the startup to get more clarity on the development.

The Ahmedabad-based startup filed the DRHP for an initial public offering (IPO) of a fresh issue of 2.47 Cr equity shares on September 30, 2024. 

The coordinating lead manager for the IPO was Pantomath Capital Advisors. 

The startup planned to use the capital to pay for “fit-outs” in its new centres, security deposits, repayment and prepayment of certain borrowings, including redemption of non-convertible debentures (NCDs). Besides, it was to use the funds for general corporate purposes. 

Founded by Parth Shah, Rushit Shah and Umesh Uttamchandani in 2017, DevX provides coworking space solutions, managed office spaces, workspace solution offerings, among others. It counts the likes of Zomato, Persistent, Tim Hortons, Indian Energy Exchange, among others, as its clients. 

In the run up to filing its DRHP, the coworking startup turned profitable in the fiscal year 2023-24 (FY24). It reported a net profit of INR 43.7 Lakh in FY24 as against a loss of INR 12.8 Cr in the previous fiscal year. Revenue from operations surged 55% to INR 108.08 Cr from INR 69.91 Cr in FY23. 

The development comes at a time when a number of startups in the corworking and managed office space are eyeing a public listing. While Awfis went public last year, Smartworks received SEBI’s nod to go ahead with its IPO in December.

Meanwhile, IndiQube and WeWork India have also filed their respective DRHPs with the markets regulator.