The initial public offering of Dev Accelerator Ltd saw a subscription rate of 16.08 times by the second day of the sale on Thursday. The segment for Retail Individual Investors (RIIs) attracted an impressive 59.31 times subscription. The portion set aside for non-institutional investors was subscribed 15.36 times, while the Qualified Institutional Buyers (QIBs) segment received 2.40 times subscription.

On Tuesday, Dev Accelerator Ltd announced that it has secured ₹63 crore from anchor investors.

The Dev Accelerator IPO, which opened on Wednesday, September 10, is set to close today, Friday, September 12. Dev Accelerator IPO price band has been established at ₹56 to ₹61 per share.

Dev Accelerator, commonly referred to as DevX, is sponsored by the publicly listed Dev Information Technology Ltd. The company stated that 75 percent of the total issue size is designated for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 10 percent for retail investors.

Moreover, investors have the option to bid for a minimum of one lot consisting of 235 shares and in increments of 235 shares thereafter.

Dev Accelerator Limited, or DevX, specializes in providing adaptable office spaces, including coworking arrangements. The firm has broadened its reach to 15 centers across India, which include major metropolitan areas like Delhi-NCR, Hyderabad, Mumbai, and Pune.

Dev Accelerator IPO GMP today

Dev Accelerator IPO GMP today, or grey market premium, is +10. This indicates Dev Accelerator share price is trading at a premium of ₹10 in the grey market on Thursday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Dev Accelerator IPO is indicated at ₹71 apiece, which is 16.39% higher than the issue price of ₹61.

According to the grey market activities from the last ten sessions, the IPO GMP is showing an upward trend today, indicating a robust listing expectation. The lowest GMP recorded is ₹0.00, while the highest is ₹10, as per experts.

‘Grey market premium‘ indicates investors’ readiness to pay more than the issue price.

Dev Accelerator IPO details

The company’s initial public offering consists entirely of a new issue of 2.35 crore equity shares, valued at ₹143.35 crore at the highest end of the price range. At this upper limit, the company’s market valuation is estimated at ₹550 crore.

The company intends to use the funds to finance “fit-outs” for the new centres and their security deposits, repay existing debt, and for general corporate purposes, which include strategic initiatives, enhancing marketing capabilities, brand development efforts, and settling lease liabilities.

This influx of capital will allow DevX to broaden its presence in key cities such as Mumbai, Gurugram, Noida, Pune, Chennai, GIFT City, Ahmedabad, Vadodara, Rajkot, Surat, Goa, and Jaipur.

Pantomath Capital Advisors Pvt. Ltd. serves as the lead manager, while Kfin Technologies Ltd. acts as the registrar for the offering.

Dev Accelerator IPO Review

According to Reliance Securities, DevX has established itself as a prominent Tier-2 player in the managed workspace sector, boasting high occupancy rates and solutions tailored for enterprises. Its diverse strategy effectively balances capital efficiency with growth, and both revenue and ROCE have seen significant improvements.

The company’s expansion plans into Tier-1 markets and a forthcoming international venture enhance its long-term prospects. Given these advancements, the brokerage advises subscribing.

SBICAP Securities reported that the company experienced a turnaround in FY24, achieving a modest profit of ₹1.8 crore in FY25. The lower profit is attributed to increased interest and depreciation expenses resulting from lease liabilities. Nonetheless, the revenue has shown a remarkable compound annual growth rate (CAGR) of over 50% from FY23 to FY25, although the debt-to-equity (D/E) ratio stands at a high 2.4x as of FY25 (post-issue, the D/E ratio is expected to decrease to approximately 1x).

Following the issuance, the promoter’s stake will decline to about 37% due to dilution. The brokerage maintains a NEUTRAL stance on the company and intends to observe its performance in comparison to major competitors after the listing.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.