Startups TBO Tek, Awfis IPOs Approved by SEBI for Fundraising

Delhi-based Office-Sharing Company Awfis Space Solutions is all set to go public as it receives clearance from the market watchdog. The Securities and Exchange Board of India (SEBI) has allowed the startup to launch its initial public offering (IPO). The company's IPO journey began when it filed its draft papers in December, aiming to raise Rs 160 crore through a combination of fresh shares issuance and the sale of existing shares.

Established in 2015 by entrepreneur Amit Ramani, Awfis Space Solutions Pvt. Ltd. is a co-working space startup committed to delivering state-of-the-art office solutions. With a focus on offering plug-and-play office spaces integrated with cutting-edge technology, Awfis has expanded its footprint to encompass 16 cities throughout India. The company's diverse clientele includes freelancers, startups, small and medium enterprises (SMEs), as well as large corporations and multinational companies (MNCs).

Stakeholders Divesting Shares: Investors Unload Holdings as IPO Approaches

Peak XV Partners, previously known as Sequoia Capital India, intends to sell approximately 5 million shares of Awfis through the upcoming IPO. Similarly, Bisque Ltd, a subsidiary of ChrysCapital, plans to offload a comparable number of shares. Additionally, real estate investment trust Link Investment Trust is looking to divest over 75,000 shares. Notably, Peak XV currently holds 15 million shares, representing a 22.9% stake, while Bisque possesses a 23.5% stake. The company's founder and CEO, Amit Ramani, holds an 18.2% stake.

Expansion Plans and Fiscal Performance Insights

Awfis envisions utilizing the proceeds from the fresh share issuance for expansion endeavors, including establishing new centers, fulfilling working capital requirements, and addressing general corporate needs. According to data disclosed in the draft red herring prospectus, the company's operating revenue more than doubled in the fiscal year ending March 31, 2023, reaching Rs 545 crore from Rs 257 crore in FY22. Notably, the first quarter of fiscal 2024 saw operating revenue amounting to Rs 188 crore. However, FY21 witnessed a decline in operating revenue to Rs 178 crore due to Covid-19-related disruptions.

SEBI Approvals for TBO Tek

In a parallel development, leading travel distribution platform TBO Tek Ltd has also received the green light from SEBI for its IPO. TBO Tek's IPO comprises a fresh issuance of shares worth Rs 400 crore, along with an offer-for-sale (OFS) of 1.56 crore equity shares by promoters and investors. Prominent stakeholders in the OFS include Gaurav Bhatnagar, Manish Dhingra, LAP Travel, TBO Korea, and Augusta TBO. The IPO is being managed by Axis Capital, Goldman Sachs (India), JM Financial, and Jefferies India.

Industry Dynamics and Upcoming Market Offerings

According to a media report, WeWork Inc., the US-based coworking giant that filed for bankruptcy protection in November, is exiting its India operations. WeWork is divesting its 27% stake in the local unit through a secondary deal, estimated to be valued at Rs 1,200 crore. Amidst this backdrop, several other contemporary companies, such as SoftBank-backed Unicommerce, Ola Electric, FirstCry, and Mobikwik, have filed draft papers for their IPOs. Swiggy, a Bengaluru-based food and grocery-delivery firm, is also gearing up to file for a $1 billion IPO soon.

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