Ahmedabad-based coworking space provider DevX, also known as Dev Accelerator Ltd, has filed its draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The company is gearing up for an Initial Public Offering (IPO) consisting solely of a fresh issue of 2.47 crore shares.
These shares will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The IPO will not include an offer for sale component, meaning only new shares will be issued and no existing shareholders will sell their stakes.
Pantomath Capital Advisors Pvt. Limited. will be the lead book-running manager for the issue, and KFIN Technologies Ltd. will act as the registrar.
Focused on expansion and debt payment.
DevX plans to use the funds raised in the IPO to fuel its growth, especially in expanding its coworking space business. Specifically, a significant portion of the revenue, around Rs 68.95 crore, will go towards capital expenditure for ‘equipping’ its new centers and security deposits for these centres.
Another Rs 30 crore will be used to repay and prepay certain loans, including repayment of non-convertible debentures (NCDs) issued by the company.
It will also allocate funds for general corporate purposes to support its overall business operations and long-term growth strategies.
Financial performance
DevX has demonstrated strong financial growth in recent years. As per its DRHP, the company turned profitable in fiscal year 2023-24 (FY24), reporting a profit after tax (PAT) of Rs 43.7 lakh. This is a significant change from the previous fiscal year, where it posted a loss of Rs 12.8 crore in FY23 and Rs 7.5 crore in FY22.
Revenue from operations for FY24 stood at Rs 108.08 crore, an increase of 55% compared to Rs 69.91 crore in FY23. The company’s steady growth highlights highlights the growing demand for coworking spaces, especially as companies across India continue to adopt flexible office solutions.
DevX Market Presence
DevX, founded in 2017 by Parth Shah, Rushit Shah and Umesh Uttamchandani, currently operates over 25 centers in over 10 cities including Ahmedabad, Vadodara, Bengaluru, Delhi, Kochi and Surat.
As part of its expansion plan, the company is looking to set up new coworking centers in key cities like Mumbai, Gurugram, Noida, Pune, Chennai, GIFT City, Ahmedabad, Rajkot, Goa, Surat and Jaipur over the next three years.
The company serves a wide range of clients, including big names such as Zomato, WhiteOak, Tim Hortons, Hitachi and Darwinbox. DevX positions itself as a leading provider of coworking spaces and managed offices in Gujarat, and its expansion plans aim to strengthen its presence across India.
In February 2023, DevX raised $7 million through a combination of debt and equity, backed by investors such as Kalpesh Harakhchand Gala, Unmaj Corporation, and Bidiwala Family Office.
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