Shareholders of Awfis Space Solutions are Expected to Offload Shares valued at INR 583 Crore

Nitin Konde, Varun Bhardwaj

Dec 12, 2024 — 2 min read

Awfis Shareholders to Sell Shares Worth INR 583 Crore

According to reports, Delhi-based Link Investment Trust, Mauritius-based Bisque Limited, and prominent venture capital company Peak XV Partners intend to offload Awfis shares valued at INR 583 Cr. The three investors will collectively offload a 12.2% interest, or 85.8 lakh shares, in the flexible workspace solutions company through a block deal, according to a media outlet, which cited sources. The investors will offload the shares for INR 680 each. Compared to the stock's closing price of INR 717.05 on 10 December, this indicates a 5.2% discount. IIFL Capital Services and ICICI Securities are the deal's book runners.

As of September 2024, Bisque and Link Investment Trust owned 14.38% and 0.36% of Awfis, respectively, while promoter Peak XV owned 10.92% of the coworking space provider. Awfis's stock has increased by more than 70% since its launch in May, although it has decreased by 7.5% in the last month.

Brokerages Continue to be Bullish on the Company

Up to five analysts that follow the company have a "BUY" rating on the stock, indicating that brokerages are still positive on the business. The optimistic forecast is primarily due to Awfis's quick expansion and acquisition of new office space. The company said last month that it would develop and oversee the National Stock Exchange's 1.65 lakh square feet of office space in Mumbai. Rounak Real Estate Consultants, a company that specialises in high-value real estate advice services, helped to facilitate Awfis’ collaboration with the NSE.

Amit Ramani founded Awfis in 2015, and as of March 2024, it has 181 facilities, over 1.1 lakh seats, and 5.6 million square feet of billable space, making it the largest flexible space operator in India. The business began as a coworking network before branching out into the market for tech-enabled workspace solutions.

Awfis Financial Dynamics

In Q2 of the fiscal year 2024–2025 (FY25), it posted a consolidated net profit of INR 38.67 Cr. In Q2 of FY24, on the other hand, it reported a net loss of INR 4.34 Cr. During the reviewed quarter, operating revenue increased 40.46% from INR 208.15 Cr in Q2 FY24 to INR 292.38 Cr. On the BSE, Awfis's shares ended on December 10, trading session 0.15% lower at INR 716.95.

According to Amit Ramani, chairperson of Awfis Space Solutions, the recently signed NSE contract will help the company's income in both the current fiscal year and the fiscal year 2025–2026. Ramani had told a media outlet that the contract would "certainly help" with the 30% revenue projection that the company had provided for FY25.

Awfis and Nyati Group also collaborated in August to build an extra 3 lakh square feet of Grade-A workspace. It intends to open first-rate flexible workspaces in the prestigious commercial buildings "Nyati Empress" in Viman Nagar and "Nyati Enthral" in Kharadi, both owned by the Nyati Group.