How Awfis Space Solutions Stock Performed 1 Month After Listing?

Awfis Space Solutions, a leading player in India’s flexible workspace market, was listed on the stock exchanges in May 2024. The IPO, sized at ₹598.93 crore, aimed to raise fresh capital and provide existing investors with an exit route.

IPO Performance and Market Demand

The IPO garnered significant attention due to India’s demand for flexible workspaces. Rising startup culture, company cost optimisation, and the trend of remote work are driving the market’s growth.

According to a report from Avendus Capital, the flex workspace segment is forecasted to expand significantly by 2028, reaching approximately 126 million square feet and capturing a market size of around $9 billion.

The segment is expected to grow at a CAGR of about 15% over the next 5 years, starting from ~61 million square feet in CY23, which itself was up from 48 million square feet in 2022 and 29 million square feet in 2019 before the Covid-19 pandemic. The segment is projected to increase from $3.5 billion in terms of market value.

Awfis Space Solutions being a prominent player in this space, attracted investor interest. The issue was priced between ₹364 and ₹383 per share. The IPO received a strong response, oversubscribing by over 100 times.

Listing Performance

On May 30, 2024, Awfis Space Solutions was listed at a premium on BSE and NSE, exceeding the issue price and reflecting investor confidence. The company was listed at ₹435, at a premium of 13.5% over the issue price of ₹383.

Stock Price Performance

In a span of over a month (May 30, 2024 – July 2, 2024), the stock price increased by 18.70% from the listing price. The stock touched its all-time high at ₹578.95 on June 26, 2024 and all-time low at ₹371.40 on June 4, 2024. On July 3, 2024, the stock opened at ₹518.00.

FY 2024 Financial Performance

For FY 2024 overall, operating revenue reached ₹849 crore, reflecting a strong 56% year-on-year growth. Additionally, Awfis Space Solutions stated that Operational Centres and Seats grew by 35% and 39%, respectively, from FY 2023 to FY 2024, with expansion into 8 tier-2 cities.

In Q4FY 2024, the company reported a notable increase in operating revenue to ₹232 crore, marking a 45% year-on-year growth. The Profit Before Tax (PBT) was at ₹1.4 crore, compared to the loss of ₹14 crore in Q4FY 2023.

Conclusion

Awfis Space Solutions’ long-term success depends on capitalising on the booming flexible workspace market. Investors will closely monitor how the company utilises the IPO funds to expand its footprint and maintain its competitive edge.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.