India’s co-working and flexible workspace sector is getting a fresh jolt of investor attention as Dev Accelerator Ltd. gears up for its maiden public offering. The Gujarat-based workspace solutions provider will open its IPO for subscription on September 10, 2025, and close on September 12. With a price band of Rs 56 to Rs 61 per share and a grey market premium (GMP) of Rs 9, the IPO is drawing interest from retail and institutional investors alike. The listing is scheduled for September 17 on both NSE and BSE.
Key highlights
- IPO opens September 10 and closes September 12
- Price band: Rs 56 to Rs 61 per share
- Issue size: Rs 143.35 crore via fresh issue of 2.35 crore equity shares
- GMP as of September 6: Rs 9, indicating a potential listing price of Rs 70
- Lot size: 235 shares, minimum investment Rs 13,160
- Listing date: September 17, 2025
- Anchor book opens September 9
Business overview and financials
Dev Accelerator, incorporated in 2020, offers flexible workspace solutions across 11 cities in India, including Mumbai, Hyderabad, Pune, and Ahmedabad. The company operates 28 centers with a total managed area of 860,522 square feet and serves over 250 clients. Its business model includes straight lease, revenue share, and landlord-furnished models.
In FY 2024–25, Dev Accelerator reported:
- Revenue: Rs 158.9 crore, up 47 percent from Rs 108 crore in FY 2023–24
- Net profit: Rs 1.74 crore, a 303 percent increase from Rs 0.43 crore
- EBITDA: Rs 80.45 crore, up from Rs 64.7 crore
The sharp rise in profitability is attributed to a surge in other income, which jumped to Rs 19 crore from Rs 2.6 crore in the previous year.
Use of proceeds
The IPO proceeds will be fully utilized by the company, with no offer for sale component. Allocation includes:
- Rs 73.1 crore for fit-outs in new centers
- Rs 35 crore for repayment of borrowings and redemption of non-convertible debentures
- Remaining funds for general corporate purposes
Dev Accelerator plans to establish eight new centers, four of which will be funded directly from the IPO proceeds. These centers will add an estimated 940,961 square feet to its portfolio over the next two fiscal years.
Market positioning and competition
Dev Accelerator competes with larger players like Awfis Space Solutions, Smartworks, and Indiqube. While its revenue is significantly lower than its peers (who report Rs 1,000–1,200 crore annually), Dev Accelerator’s strategic expansion and Tier 2 city focus offer a differentiated growth path.
Peer comparison (FY 2025 P/E ratios):
- Awfis: 60.95
- Smartworks: 74.04
- Indiqube: 28.69
Dev Accelerator’s expected post-IPO market capitalization is Rs 550.14 crore, positioning it as a mid-sized player with room to scale.
GMP trends and investor sentiment
The current GMP of Rs 9 suggests a listing price of Rs 70, offering a potential gain of Rs 2,115 per lot. While GMP is not an official indicator, it reflects market sentiment and speculative interest. The IPO is expected to be moderately oversubscribed, especially among retail investors.
Conclusion
Dev Accelerator’s IPO presents a compelling opportunity for investors seeking exposure to India’s growing co-working sector. With strong revenue growth, improving profitability, and a clear expansion roadmap, the company is well-positioned for long-term value creation. However, investors should weigh the relatively modest profit base and competitive landscape before placing their bets.
Sources: ET Now, Business Standard, Moneycontrol, LiveMint, IPO Watch India
