Awfis Space Solutions IPO Day 3: Latest GMP and Subscription Status Revealed! Should You Buy ?

Awfis Space Solutions is aiming to raise ₹598.93 crore through its Initial Public Offering (IPO). The IPO started on May 22 and will end on May 27.

Awfis is currently the biggest flexible workspace provider in India, catering mainly to small and medium-sized businesses. The company is offering its shares at a price of ₹483 each.

The Grey Market Premium (GMP) for Awfis shares is ₹100 per share, indicating a 26.11% increase from the IPO price.

Subscription Status

As of the second day of bidding, the IPO has been subscribed 4.27 times. In the retail category, it’s subscribed 12.25 times, while in the Non-Institutional Investors (NII) category, it’s subscribed 6.81 times. The Qualified Institutional Buyers (QIBs) category has seen a subscription of 32% so far.

The IPO includes a fresh issue of 33 lakh shares worth ₹128 crore and an offer for sale (OFS) of 1.23 crore shares worth ₹470.93 crore.

The price band for Awfis IPO is set between ₹364 to ₹383 per share, with a lot size of 39 shares. There’s also a reservation of up to 57,636 shares for employees, offered at a discount of ₹36.

The company has appointed several book running lead managers for the IPO, including ICICI Securities, Axis Capital, IIFL Securities, and Emkay Global Financial Services Ltd, with Bigshare Services Pvt Ltd as the IPO registrar.

Analyst Recommendations and Concerns

While many analysts suggest subscribing to the IPO, some have expressed concerns over Awfis’s consistent losses. Anand Rathi, a brokerage firm, highlights the company’s large Total Addressable Market (TAM) and recommends a long-term subscription. However, Tarun Singh from Highbrow Securities raises doubts about the company’s financial struggles and the IPO’s structure, suggesting investors carefully evaluate the risks.

Despite concerns, the flexible workspace sector is expected to grow rapidly due to changing work habits and technological advancements.