Shares of Awfis Space Solutions Ltd remained rangebound after a mild listing pop on Thursday. The stock saw some follow-up buying action after the listing but profit booking at higher levels kept the gains in check. The stock was hovering near its issue price in the later end of its maiden trading session.
Awfis Space Solutions was listed at a premium of around 14 per cent at Rs 435 on NSE and at a premium of 13 per cent at Rs 432.25 on BSE, over its issue price of Rs 383 apeice. However, the stock rose another 4 per cent to extend overall gains to 18 per cent over the issue. However, analysts have a mixed view on the stock after listing.
Awfis Space Solutions, a leading player in India's flexible workspace market, witnessed a decent listing on the stock exchanges. The pre-listing GMP suggested a potentially higher listing gain, but it gradually declined in the days leading up to the listing, possibly reflecting a more cautious investor approach, said Shivani Nyati, Head of Wealth, Swastika Investmart.
"While not explosive, Awfis Space Solutions' listing presents a decent starting point. The strong subscription highlights the attractiveness of the co-working space market, but the company's financial situation requires ongoing monitoring. Investors are suggested to hold their position by keeping a stop loss at the issue price," she added.
Awfis Space Solutions' IPO was open for bidding May 22 and May 27. The company offered its shares in the fixed price band of Rs Rs 364-383 per share with a lot size of 39 shares. The company raised a total of Rs 598.93 crore through its primary offering, which included a fresh share sale of Rs 128 crore and offer-for-sale (OFS) of up to 1,22,95,699 equity shares.
The issue was overall subscribed a whopping 108.56 times. The quota for qualified institutional bidders (QIBs) was booked 116.95 times and the allocation for non-institutional investors was subscribed 129.81 times. The portions reserved for retail investors and employees were subscribed 54.58 times and 25.20 times, respectively during the bidding process.
Awfis Space Solutions' share price is listed at a decent premium over its issue price of Rs 383 per share despite the overall market sentiment continuing to be cautious, said Shreyansh V Shah, Research Analyst at StoxBox.
Despite steady growth in its top line, Awfis has seen declining losses, indicating a positive trend in its financial health. Based on the above qualitative factor, we advise the investor who have been allotted the shares to hold it for the long term, he added.
New Delhi-based Awfis Space Solutions, incorporated in December 2014, is a workspace solution provider in India. The company offers a wide range of flexible workspace solutions, catering to the needs of individuals, start-ups, SMEs, and large corporations. It has expanded its business offerings and now provides in-house fit-out and facility management services at its centers.
IIFL Securities, ICICI Securities, Axis Capital and Emkay Global Financial Services are the book running lead managers of the Awfis Space Solutions IPO, while Bigshare Services is the registrar for the issue.