IPO Details
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IPO Size
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Schedule of Dev Accelerator Ltd
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Dev Accelerator Ltd IPO
The IPO of Dev Accelerator Ltd is a 100% book-built issue comprising only a fresh issue. It has no offer for sale. The shares will be credited on TBA. The shares will be allotted on TBA and the refunds will be initiated on TBA.
Objectives of Dev Accelerator Ltd IPO
The company proposes to utilise the IPO proceeds for:
- Capital expenditure for fit-outs in the new centres and for security deposits of the new centres
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company including redemption of non-convertible debentures issued by the company
- General corporate purposes
Dev Accelerator Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue Size | Up to 24,700,000 equity shares |
Offer for Sale | NA |
Basic EPS in ₹ for FY 24 (at face value of ₹ 10 each - pre-bonus & split) | 347.30 |
Dev Accelerator Ltd IPO Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the issue size |
Non-institutional Investors | Not more than 15% of the issue |
Retail Individual Investors | Not more than 10% of the issue |
Industry Outlook
As portfolio strategies increasingly prioritise flexibility and talent retention, flex space operators are playing a crucial role in India's office markets. In Q1 2024, flex space accounted for 21% of gross leasing, highlighting its growing significance. It is worth noting that the flex space stock has experienced significant growth, increasing from 18.6 mn sq ft in 2018 to 65 mn sq ft in Q1 2024, with a CAGR of 26%.
Going forward, the trend of flex space expansion is expected to continue with the operational flex stock estimated to double over the next five years and reach ~122 mn sq ft by 2028. This projected growth reflects the sustained demand for flexible office solutions and the recognition of their value in meeting evolving workplace dynamics
Company Information
Dev Accelerator Ltd is one of the largest flex space operators in terms of operational flex stock in Tier 2 markets. They provide integrated services from sourcing office spaces, customizing designs, developing spaces and providing technology solutions to providing complete asset management. As on August 31, 2024, they service over 230 clients and have 25 centres across 11 cities in India, with 12,691 seats covering a total area under management of 806,635 square feet.
Strengths of Dev Accelerator Ltd
Leadership position as one of the largest managed space operators in Tier 2 markets well positioned to capture industry tailwinds and growth prospects for the flexible workspace sector in India
The company is one of the largest managed space operators in Tier 2 markets in terms of operational flex stock, with centres across six cities. Accordingly, it’s positioned favourably to capture this growth in the flexible workspace sector. With an operational footprint of nearly 0.6 million sq. ft. and ~8,000 seats, it has a strong presence across cities such as Ahmedabad (including Gandhinagar), Indore, Jaipur, Udaipur, and Vadodara. Alongside being one of the largest operators, the company maintains impressive average occupancy levels of 80-85% across these locations (Source: JLL Report).
Pan-India presence with consistently high occupancy rates across its centres
As of August 31, 2024, the company had operations across 11 cities, including Ahmedabad, Mumbai, Noida, Pune, Hyderabad, Jaipur, and Vadodara, covering a total area under management of 806,635 sq. ft. The company is present in four out of the top seven markets in Tier 1 cities. Further, they are one of the largest managed space operator in Tier 2 markets in terms of operational flex stock, with centres across 6 cities (Source: JLL Report).
Customer-centric business model with an integrated platform approach, ensuring long-term relationships with customers
The company offers fully customisable office spaces tailored to specific business needs, with added advantage of zero capital expenditure for its customers. This enables businesses to establish their presence without significant upfront investment, thereby enabling them to allocate their financial resources more effectively towards their core business activities. Their bespoke office space solutions are built within 90 to 120 days timeframe, ensuring prompt turnaround time and minimal disruption to client operations. Their customization process involves presenting prospective clients with a range of design templates for various workspace formats. Additionally, clients have the option to engage their comprehensive facility management services, which encompass housekeeping, security, and valet parking services. This integrated approach allows clients to concentrate on their core operations.
Risks of Dev Accelerator Ltd IPO
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The company derives a significant portion of its revenue from clients engaged in certain industries More than 80% revenue from its operations is generated from clients in IT / ITES industry for each of the last three fiscals and a loss of, or a significant decrease in business from clients in these industries could adversely affect its business, results of operations, financial condition and cash flows.
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While the company has a diversified customer base, its top 10 customers have been contributing to less than 50% of its revenue from operations for each of the last three fiscals. Any decrease in revenues or sales from any one of its key customers may adversely affect its business and results of operations.
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A portion of its new clients originate from brokers. In the event if such brokers continue to gain market share compared to its direct booking channels or its competitors are able to negotiate more favourable terms with such brokers, its business, cash flows and results of operations may be adversely affected.
All Financial Information about Dev Accelerator Ltd
Comprehensive financial data, including revenue, profit/loss statements, EBITDA, and other critical metrics.
Particulars (in Rs. Crore)
Particulars (in Rs. Crore)
Comparison with peers
| Parameter for FY 24 | Dev Accelerator Ltd | Awfis Space Solutions Ltd |
|---|---|---|
Revenue from Operations (in ₹ crore) | 108.087 | 848.819 |
P/E | NA | NA |
Return on Net Worth in % | 1.50 | (6.99) |
IPO Registrar and Book Running Lead Manager
KFin Technologies Ltd is the registrar of Dev Accelerator Ltd IPO. Pantomath Capital Advisors Pvt Ltd is its book running lead manager.
Business Model
Dev Accelerator Ltd commenced its operations in 2017 offering comprehensive office space solutions tailored to the needs of diverse businesses. It provides integrated services from sourcing office spaces, customising designs, developing spaces and providing technology solutions to providing complete asset management. As on August 31, 2024, the company serviced over 230 clients and had 25 centres across 11 cities in India, with 12,691 seats covering a total area under management of 806,635 square feet.
Company Growth Trajectory
The company’s revenue from operations grew from ₹30.883 crore in FY 22 to ₹108.087 crore in FY 24. Its EBITDA margin grew from 44.91% in FY 22 to 59.90% in FY 24.
Market Position
The company is one of the largest flex space operators in terms of operational flex stock in Tier 2 markets. As on August 31, 2024, the company has serviced over 230 clients and has 25 centres across 11 cities in India, with 12,691 seats covering a total area under management of 806,635 square feet. Its clientele comprises large corporates, MNCs and SMEs, to whom it offers a variety of flexible office space solutions such as managed office spaces and coworking spaces.
Dev Accelerator Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 110.732 | 71.367 | 31.368 |
Profit/Loss before tax (in ₹ crore) | (86.19) | (160.45) | (83.23) |
Restated Profit/(loss) for the Year (in ₹ crore) | 0.437 | (12.830) | (7.512) |
EBITDA (in ₹ crore) | 64.739 | 29.881 | 13.871 |
EPS in ₹ | 0.08 | (2.55) | (1.67) |
Dev Accelerator Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Restated Profit/(loss) for the Year (in ₹ crore) | 0.437 | (12.830) | (7.512) |
Net Cash Flow from Operating Activities (in ₹ crore) | 8.039 | 26.481 | 14.054 |
Net Cash Flow from Investing Activities (in ₹ crore) | (41.337) | (24.060) | (7.483) |
Net Cash Flow From Financing Activities (in ₹ crore) | 33.297 | (3.657) | (5.722) |
Cash & Cash Equivalent at the End of the Year (in ₹ crore) | 0.543 | 0.544 | 1.780 |
How to Check Allotment Status of Dev Accelerator Ltd IPO?
You can check the allotment status of Dev Accelerator Ltd IPO from the BSE website or through its registrar’s portal. To check status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down.
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To check status on the registrar’s portal:
- Visit the website of KFin Technologies Ltd
- Choose IPO allotment status from ‘Products’ dropdown
- Click on any of the links
- Select the IPO
- Input either your application number, PAN number or Demat number
- Enter captcha and click on Submit
How to Apply for the IPO of Dev Accelerator Ltd?
To apply for the IPO of Dev Accelerator Ltd:
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Dev Accelerator Ltd IPO FAQs
What is Dev Accelerator Ltd IPO?
The IPO of Dev Accelerator Ltd comprises a fresh issue with no offer for sale. The IPO is a 100% book-built issue.
What are the bidding dates for Dev Accelerator Ltd IPO?
The bidding dates are yet to be known.
From where can I learn more about Dev Accelerator Ltd and its IPO?
You can learn more about Dev Accelerator Ltd and its IPO from the company’s draft red herring prospectus here
