NEW DELHI: Awfis Space Solutions (Awfis) has filed its draft red herring prospectus (DRHP) with market regulator securities and exchange board of India (SEBI).
The company’s initial public offering comprises a fresh issue of up to Rs 160 crore and an offer for sale of equity shares of up to 10,023,172 equity shares.
The offer for sale comprising up to 5,011,586 equity shares by Peak XV Partners Investments V (formerly known as SCI Investments v) (Peak XV or the promoter selling shareholder), up to 4,936,412 equity shares aggregating by Bisque and up to 75,174 equity shares by Link Investment Trust.
The company proposes to utilize the net proceeds from the offer towards funding capital expenditure towards establishment of new centers, funding for the working capital requirements, and general corporate purposes.
ICICI Securities, Axis Capital, IIFL Securities, Emkay Global Financial Services are the book running lead managers to the issue.
With 136 total centers in 16 cities, the company provides a total of 81,433 seats, covering a chargeable area of 4.12 million sq. ft. Among these, 15 centers with 11,191 seats are currently under fit-out, with a chargeable area aggregating to 0.53 million sq. ft.
Awfis follows the managed aggregation (MA) model, wherein the space owners becomes a stakeholder in the center by co-investing in the fit-out infrastructure.
The developers or space owners typically incur capital expenditure on fit-out, in part or full, the remainder being borne by the operator, if any, depending on other terms of the MA model, often foregoing a fixed rental for a component of MG on a case-to-case basis and may take up a share of the revenue/profit on pre-negotiated terms.
“Over the years, we have increased our focus on the lower-risk, asset light MA model and as of June 30, 2023, 64.96% of our centers are under the MA model, based on total seats,” the company said in a press release.
