Dev Accelerator IPO kicks-off for bidding: Should you subscribe to this issue?

Dev Accelerator (DevX) launched its initial public offering (IPO) on Wednesday, September 10. The coworking solutions player is offering its shares in the range of Rs 56-61 apiece. Investors can apply for a minimum of 235 equity shares and its multiples thereafter, until Friday, September 12, when the issue closes for bidding.

Dev Accelerator is looking to raise a total of Rs 143.35 crore via its IPO, which is entirely a fresh share sale of 2,35,00,000 equity shares. The net proceeds from the issue shall be utilized towards capital expenditure for fit-outs in the new centres and their security deposits; repayment or prepayment of debt; and general corporate purposes.

Established in 2017, Ahmedabad-based Dev Accelerator, commonly known as DevX, provides flexible office spaces, including coworking environments. The company has expanded its presence to 15 centers across India, encompassing major cities such as Delhi-NCR, Hyderabad, Mumbai, and Pune.

Dev Accelerator raised a total of Rs 65.15 crore via anchor investors as it allocated 1,03,52,925 shares at Rs 61 per share. Its anchor book included names like Fi͏navenue Gr͏owth Fund,  Sunrise Inves͏tm͏ent Oppor͏tuniti͏es Fund, V͏PK Global Ventures Fund and ͏Uni͏ve͏rsal S͏ompo General Insurance.

For the financial year ended on March 31, 2025, Dev Accelerator reported a net profit of Rs 1.74 crore with a revenue of Rs 178.89 crore. It clocked a net profit of Rs 0.43 crore with a revenue of Rs 110.73 crore for the year 2023-24. It was commanding a grey market premium of Rs 9-10, suggesting a listing pop of 14-16 per cent for the investors.

Dev Accelerator has reserved 75 per cent shares will be reserved for QIB, while non-institutional investors will get 15 per cent of allocation. Retail investors will have only 10 per cent of the allocation in this IPO. The company shall command a market capitalization slightly above Rs 550 crore.

Pantomath Capital Advisors is the sole book running lead manager for the Dev Accelerator IPO, while Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on September 17, Wednesday. Here's what a host of brokerage firms said about the IPO of Dev Accelerator:
 

Reliance Securities
Rating: Subscribe
DevX has carved a niche as a Tier-2 market leader in managed workspaces with strong occupancies and enterprise-focused solutions. Its multi-model approach balances growth and capital efficiency, while revenue and ROCE have improved sharply. Expansion into Tier-1 and an upcoming overseas foray add long-term potential. Owing to such developments, said Reliance Securities with a 'subscribe' rating.
 

SBI Securities
Rating: Neutral
The stock is trading at a price/sale and EV/Ebitda of 3.5 times/6.6 times, respectively on post-issue capital. It turned around in FY24 and has generated a modest profit of Rs 1.8 crore in FY25. Lower profit is due to higher interest and depreciation costs on account of lease liability, said SBI Securities.

"The revenue has registered an impressive CAGR of over 50 per cent between FY23 and FY25 but D/E ratio of 2.4 times as of FY25 is high. The promoter holding will reduce to 37 per cent post-issue due to dilution. We maintain a 'neutral' view on the company and would like to monitor the performance of the company vis-à-vis its major peer's post listing," it added.

Anand Rathi Shares & Stock Brokers
Rating: Subscribe for long-term
DevX is valued at 305 times FY25 P/E and 3.5 times P/S, with a post-issue market capitalization of Rs 550.1 crore. DevX has broadened its offerings to include HR, IT, and software services through Saasjoy to strengthen client retention and address evolving workplace and technology needs, said Anand Rathi Shares & Stock Brokers.

"Via its associate Scaleax Advisory, it helps GCCs build global teams in India by providing facility and payroll management, as well as recruitment solutions like talent sourcing, AI-based screening, and team augmentation. Considering these factors, the IPO is viewed as fully priced, warranting a 'subscribe for long-term recommendation," it added.
 

Arihant Capital Markets
Rating: Neutral
Dev Accelerator is a leading flexible workspace operator in Tier-2 Indian cities, benefiting from the rapid tripling of demand since 2021. With a customer-first model offering zero-capex customizable offices, quick in-house execution, and integrated services, it ensures strong client appeal, said Arihant Capital Markets.

"Its diverse property strategies, including the OpCo-PropCo model, boost scalability, while consistently high occupancy rates of over 87 per cent reflect strong demand and customer stickiness. Its ambitious expansion plans in both Tier-1 and Tier-2 Indian cities, as well as its first international venture in Sydney, Australia. We are recommending a 'neutral” rating for this issue," it said.
 

BP Equities
Rating: Subscribe
"We believe that consistent high utilization, margin expansion and rapid scale-up holds potential to deliver robust business performance going ahead. Given its strong financial performance and operating metrics, strategic positioning in Tier 2 markets and industry tailwinds, we recommend a 'subscribe' rating for the issue from a medium to long term perspective," said BP Equities.
 

Lakshmishree Investment & Securities
Rating: Subscribe
DevX offers a compelling long-term investment opportunity in India’s growing flexible workspace sector. It benefits from strong operational support and a diversified client base, said Lakshmishree. "While competition and real estate dependencies pose risks, its growth trajectory and sector momentum support a ‘subscribe’ rating for investors seeking exposure to the future of hybrid work model in India."
 

Ventura Securities
Rating: Subscribe
Dev Accelerator differentiates itself through enterprise-grade customization, rapid turnkey delivery, and flexible commercial models— including straight leases, landlord-furnished setups, revenue-share arrangements, and OpCo–PropCo-style structures—enabling capital efficient growth, said Ventura Securities.

"Its ecosystem approach, supported by subsidiaries and partnerships in interior design, IT/ITES, HR/payroll, and facility services, provides occupiers with a single-partner experience from concept to operations. DevX, positioned as a managed office specialist with Tier 2 leadership and a growing national network, benefiting from rising demand for flexible, built-to-suit solutions and GCC-led expansion into Tier 2 cities," it added.