Awfis Space Solutions shares to list today; GMP for Ashish Kacholia-backed co falls further

Shares of Awfis Space Solutions are set to make Dalal Street debut on Thursday, May 30. As the counter gears up to kick off its maiden trading session, the counter has seen a sharp correction in its grey market premium (GMP) in the last few hours following the sharp sell-off in the broader markets.

Ahead of its listing, Awfis Space Solutions was commanding a premium of Rs 85-90 in the grey market, suggesting a listing pop of 22-25 per cent to the investors on listing over its issue price of Rs 383 apeice. However, the premium in the unofficial market stood at Rs 110 about a day earlier.

Awfis Space Solutions IPO has received robust oversubscription and we expect a substantial listing of the issue, around Rs 500 per share, said Shreyansh V Shah, Research Analyst at StoxBox. Shah sees about a 30 per cent listing pop for the investors. "We advise investors who have received allotment to hold shares from a long-term perspective," he said.

Awfis Space Solutions' IPO was open for bidding May 22 and May 27. The company offered its shares in the fixed price band of Rs Rs 364-383 per share with a lot size of 39 shares. The company raised a total of Rs 598.93 crore through its primary offering, which included a fresh share sale of Rs 128 crore and offer-for-sale (OFS) of up to 1,22,95,699 equity shares.

The issue was overall subscribed a whopping 108.56 times. The quota for qualified institutional bidders (QIBs) was booked 116.95 times and the allocation for non-institutional investors was subscribed 129.81 times. The portions reserved for retail investors and employees were subscribed 54.58 times and 25.20 times, respectively during the bidding process.

Awfis Space Solutions is set for a decent listing despite fluctuating grey market premiums. Currently, the GMP is reflecting some investor interest., aid Shivani Nyati, Head of Wealth, Swastika Investmart. "While the high subscription suggests investor interest in the growing workspace sector, Awfis' financials necessitate a neutral stance," she adds, suggesting a decent listing.

New Delhi-based Awfis Space Solutions, incorporated in December 2014, is a workspace solution provider in India. The company offers a wide range of flexible workspace solutions, catering to the needs of individuals, start-ups, SMEs, and large corporations. It has expanded its business offerings and now provides in-house fit-out and facility management services at its centers.

According to the DRHP of the company, Seasoned Dalal Street investor Ashish Kacholia owned 34,65,691 equity shares or 5.18 per cent stake in the company who invested about Rs 50 crore in the company converting his compulsorily convertible preference share shares at Rs 144.27 apiece in April 2024.

IIFL Securities, ICICI Securities, Axis Capital and Emkay Global Financial Services are the book running lead managers of the Awfis Space Solutions IPO, while Bigshare Services is the registrar for the issue.