Coworking Space Provider DevX Submits DRHP to SEBI for Planned IPO

Ahmedabad-based coworking space provider DevX, officially known as Dev Accelerator Ltd, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in preparation for an Initial Public Offering (IPO).

The IPO will consist entirely of a fresh issue of 2.47 crore equity shares, with the newly issued shares being listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Notably, the IPO does not include an offer-for-sale component, meaning no existing shareholders will divest their holdings, and the company will issue only new shares.

IPO Management and Key Players

Pantomath Capital Advisors Pvt. will serve as the lead manager for the offering, while KFIN Technologies Ltd. will be the registrar.

Utilization of IPO Proceeds

The company intends to allocate the IPO proceeds toward business expansion, with a significant portion designated for setting up new coworking centers. Approximately Rs 68.95 crore will be used for capital expenditures, including the interior fit-outs of new centers and security deposits for these locations.

DevX also plans to allocate Rs 30 crore toward repaying and prepaying certain borrowings, including the redemption of non-convertible debentures (NCDs).

In addition, part of the funds will be used for general corporate purposes to support long-term business objectives.

Financial Performance

DevX has shown considerable financial progress over recent years. The company reported a profit of Rs 43.7 lakh in the fiscal year 2023-24 (FY24), a turnaround from a loss of Rs 12.8 crore in FY23 and Rs 7.5 crore in FY22. Revenue from operations grew significantly, reaching Rs 108.08 crore in FY24, up by 55% from Rs 69.91 crore in FY23. This growth reflects the rising demand for flexible coworking spaces in India.

Market Presence and Expansion Plans

Founded in 2017 by Parth Shah, Rushit Shah, and Umesh Uttamchandani, DevX operates over 25 coworking centers across more than 10 cities, including Ahmedabad, Bengaluru, Delhi, Kochi, and Surat.

Looking ahead, the company plans to expand further, targeting cities such as Mumbai, Gurugram, Pune, Noida, and Chennai over the next three years.

DevX serves a wide range of clients, including companies like Zomato, Hitachi, Tim Hortons, WhiteOak, and Darwinbox, positioning itself as a prominent coworking and managed office space provider in Gujarat. Its expansion strategy aims to strengthen its presence across India.

In early 2023, DevX raised $7 million through a mix of debt and equity, supported by investors such as Kalpesh Harakhchand Gala, Unmaj Corporation, and the Bidiwala Family Office.

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