IPO Snapshot & Demand
Issue Size: ₹700 crore (₹650 crore fresh issue + ₹50 crore offer for sale)
Price Band: ₹225–237 per share
GMP (Grey Market Premium): Around ₹17–₹32 — indicates a possible 7–13% listing gain
Subscription:
Day 1: ~87% overall; Retail: ~3.4×
Day 2: Fully subscribed (~2.5×); Retail: ~6.9×
Company Overview
- Business: Asset-light, tech-enabled workspace provider (like Awfis)
- Presence: 115 centers in 15 cities (~8.4 million sq. ft)
- Revenue Source: Majority from Bengaluru and Chennai (~60–80%)
- Target Clients: SMEs, startups, and large corporates
Financial Performance
- FY25 Revenue (Projected): ~₹1,059 crore
- EBITDA Margin: ~62% (strong operational efficiency)
- Net Profit: Still making losses (~₹140 crore)
- Valuation: ~4x FY25 revenue — comparable to peers
Pros
- Strong brand and fast-growing flexible workspace market
- Scalable asset-light business model
- Good anchor investor backing
- Strong retail and institutional interest in IPO
Cons
- Still unprofitable (net loss ongoing)
- High geographic concentration in South India
- Valuation is rich compared to earnings
- Competitive industry (Awfis, WeWork, Smartworks, etc.)
Should You Apply?
Apply If:
- You want to ride short-term listing gains (~7–13% GMP)
- You believe in long-term growth in the flexible office space market
- You are comfortable with high-growth, loss-making startups
Avoid If:
- You prefer investing in profitable companies
- You are a conservative investor wary of high valuations and losses
- You are concerned about sector saturation or geographic risk
✅ For short-term listing gain: Looks promising based on GMP and retail demand.
🔄 For long-term investment: Only if you are bullish on the co-working industry and can tolerate early-stage risk.
❌ Avoid if you seek stable, proven profitability right now.
Let me know if you’d like a comparison with Awfis or other peers!
