DevX, Office Space Provider Startup, Files DRHP With SEBI For IPO

Manvendra HadaOctober 1, 2024

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Three points you will get to know in this article:

DevX’s proposed initial public offering (IPO) will only consist of a fresh issue of 2.47 crore equity shares.
IPO Money to pay for “fit-outs” in its new centers, security deposits, repayment and prepayment of some borrowings.
The business intends to develop new coworking centers in Mumbai, Gurugram, Noida, Pune, Chennai, GIFT City, Ahmedabad, Vadodara, Rajkot, Surat, Goa, and Jaipur within the next three years.

Office Space Provider Startup DevX Gets a Step Closer to IPO, Files DRHP With SEBI

Amid India’s ongoing IPO boom, Ahmedabad-based coworking space provider DevX (Dev Accelerator Ltd) has filed a draft red herring prospectus (DRHP) with market regulator Securities and Exchanges Board of India (SEBI).

The startup’s anticipated initial public offering (IPO) will only consist of a new issue of 2.47 crore equity shares. The shares will be listed on both the NSE and BSE.

How Will DevX IPO Help The Startup?

DevX intends to use the funds from the IPO to expand its coworking spaces. It plans to utilize the cash to pay for “fit-outs” in its new centers, security deposits, and the repayment and prepayment of certain borrowings, including the redemption of non-convertible debentures. Furthermore, it will use the proceeds for general company reasons.

The following is a breakdown of how the startup intends to use the IPO funds:

INR 68.95 Cr allocated for new center fit-outs and security deposits.
INR 30 Cr for NCD repayment and prepayment.
General corporate purposes.

Earlier this month, ET reported that DevX intends to raise INR 125 crore via its public offering.

The business intends to create new coworking spaces in Mumbai, Gurugram, Noida, Pune, Chennai, GIFT City, Ahmedabad, Vadodara, Rajkot, Surat, Goa, and Jaipur within the next three years.

DevX Founders, Revenue, Profit, Funding, Competitors

According to the DRHP, DevX became profitable in fiscal year 2023-24 (FY24), with a profit after tax (PAT) of INR 43.7 lakh. In the preceding fiscal year, it lost INR 12.8 crore. Revenue from operations was INR 108.08 crore in FY24, up 55% from INR 69.91 crore in FY23.

DevX was founded in 2017 by Parth Shah, Rushit Shah, and Umesh Uttamchandani. It offers coworking space solutions, managed office spaces, and workplace solutions, among other things.

Its clients include Zomato, WhiteOak, Tim Hortons, Hitachi, and Darwinbox, among others.

The business last received $7 million (INR 58 crore) via a combination of finance and equity in February of this year. It is supported by Kalpesh Harakhchand Gala, Unmaj Corporation, and Bidiwala Family Office, among others.

DevX currently has 25 centers in over ten Indian cities, including Ahmedabad, Vadodara, Bengaluru, Delhi, Kochi, and Surat.

With this, the coworking startup becomes the third to consider going public this year. While Awfis went public earlier this year, Smartworks has also filed for an IPO. IndiQube, another coworking space business, is also planning an IPO soon.