Coworking Space Provider DevX Refiles DRHP, Increases Fresh Issue Size

SUMMARY

In the updated DRHP, DevX has increased the fresh issue size to up to 2.75 Cr equity shares from 2.47 Cr shares earlier

The coworking space provider aims to spend INR 87.9 Cr out of the fresh issue proceeds for fit-outs in the proposed centres, while INR 40 Cr will be earmarked for repayment of debt

DevX reported a net profit of INR 38.4 Lakh on operating revenue of INR 59.4 Cr in H1 FY25

Coworking space provider DevX (Dev Accelerator Ltd) has refiled its draft red herring prospectus (DRHP) after capital markets regulator SEBI returned its IPO papers in February this year.

In the updated DRHP, the company has increased the fresh issue size to up to 2.75 Cr equity shares from 2.47 Cr shares earlier. There will be no offer for sale (OFS), as was the case earlier.

The Ahmedabad-based startup first filed its DRHP with SEBI in September last year. However, SEBI returned the draft papers without specifying any reasons for it.

Founded by Parth Shah, Rushit Shah and Umesh Uttamchandani in 2017, DevX provides coworking space solutions, managed office spaces, workspace solution offerings, among others.

DevX competes against Awfis, which made its public market debut last year, and the likes of IndiQube and Smartworks, which are on their way to list on bourses soon.

According to the updated DRHP, the managed office space provider aims to spend INR 87.9 Cr out of the fresh issue proceeds for fit-outs in the proposed centres, while INR 40 Cr will be earmarked for repayment of debt.

As of January 31, 2025, DevX operated 25 centres spanning 11 cities, including Delhi NCR, Mumbai, Pune, Ahmedabad, Hyderabad, Gandhinagar, Indore, Jaipur, Rajkot and Vadodara. As part of its growth strategy, the startup plans to solidify its presence in existing markets as well as enter new markets, it said in a statement.

DevX may also undertake a pre-IPO placement to raise capital from private investors before going public, it said in the statement. However, it didn’t specify the quantum of the round.

The startup last raised $7 Mn (INR 58 Cr) in a mix of debt and equity in February last year. It is backed by Kalpesh Harakhchand Gala, Unmaj Corporation, Bidiwala Family Office, among others.

DevX Posts INR 38 Lakh Profit In H1 FY25

The startup clocked a net profit of INR 38.4 Lakh in the first six months of the fiscal year 2024-25 (H1 FY25). Its operating revenue stood at INR 59.4 Cr in the six-months ended September 2024.

It must be noted that the coworking space provider turned profitable in FY24. It had posted a net profit of INR 43.7 Cr in FY24 as against a loss of INR 12.8 Cr in the previous fiscal year.

DevX saw its operating revenue jump 55% to INR 108.1 Cr in the year ended March 2024 from INR 69.9 Cr in FY23.