Stock Report

Dev Accelerator Ltd Files for IPO to Fuel Expansion in Coworking Spaces

Posted On : 2024-10-02 20:25:14( TIMEZONE : IST )

Dev Information Technology Limited (Dev IT), (NSE - DEVIT, BSE - 543462), a global information technology (IT) services company providing a Cloud Services, Digital Transformation, Enterprise Applications, and Managed IT Services has reached another milestone with its promoted venture, i.e M/s. Dev Accelerator Limited (DevX), filing its draft red herring prospectus for an IPO. Dev IT is a promoter and one of the largest shareholders of DevX, one of the largest flex space operators in terms of operational flex stock, in Tier 2 markets, as per (Source: "India's Flex Space Market" report prepared and issued by Jones Lang Lasalle Property Consultants (India) Private Limited)

DevX's IPO Plans and Strategic Use of Proceeds

The proposed IPO comprises of a fresh issue of up to 2.47 Cr equity shares (face value of ₹ 2), with plans to list on both the NSE & BSE.

DevX proposes to utilise the net proceeds towards the following objects:

- ₹ 68.95 Cr will be used for "fit-outs" in the new centres and their security deposits.

- ₹ 30 Cr will go towards the repayment and/or prepayment (in full or in part) of certain borrowings availed by DevX.

- The remaining amount will be allocated for general corporate purposes, including, without limitation, strategic initiatives, strengthening marketing capabilities and brand building exercises, payment of lease liabilities, acquisition of fixed assets, business development initiatives, etc.

This capital infusion will enable DevX to expand its footprint in major cities, including Mumbai, Gurugram, Noida, Pune, Chennai, GIFT City, Ahmedabad, Vadodara, Rajkot, Surat, Goa, and Jaipur. As of August 31, 2024, DevX had 25 centres in more than 10 cities, including Ahmedabad, Vadodara, Hyderabad, Delhi, and Udaipur. The expansion enabled by the IPO proceeds will further solidify its position as a major player in the managed office space segment, wishing will cater more clients.

The collaboration between Dev IT's expertise in digital transformation and DevX's flexible workspace solutions creates a unique synergy, offering integrated solutions for enterprises looking to enhance operational efficiency.

Commenting on the recent update, Mr. Pranav Pandya Founder & Chairman of Dev Information Technology Limited, said, "We are pleased to announce the filing of the DRHP for our promoted company, DevX. This significant milestone underscores our commitment to the dynamic growth of the flexible work space sector in India. The IPO strategically positions DevX to leverage the increasing demand for flexible office solutions, enabling us to deliver innovative workspace environments tailored to the evolving needs of the clients.

This IPO will not only enhance DevX's operational capabilities but also strengthen its financial stability. By securing additional capital, DevX aims to broaden service offerings and elevate customer experiences. The funds raised will be instrumental in accelerating DevX's expansion plans, enabling DevX to enter new markets, enhance its infrastructure, and invest in technology that drives efficiency.

The successful execution of this IPO is expected to substantially accelerate DevX's growth trajectory, affirming its role as a key innovator within our portfolio. The synergy between DevX's flexible work space solutions and our IT services will create a unique ecosystem that delivers integrated solutions, empowering enterprises to optimize their operations effectively."