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IPO listed on 17 Sep'25

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Dev Accelerator Ltd

Minimum Investment

14,335 / 235 shares

Issue price

61

Listing price

61

Listing day %

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5%

Listing on

Sep 17, 2025

Our Verdict:

Neutral

  • Dev Accelerator Ltd (DevX) positions itself as a fast-growing leader in the Tier 2 flex space market, offering a diverse range of services. The company has shown solid growth in its top line and EBITDA, with occupancy levels consistently above 80% over the past three years, signaling strong demand. However, its PAT margin remains low at just 1%.
  • The company follows a capex-heavy model, requiring significant upfront fit-out costs under its straight lease model, which could put pressure on free cash flows during expansion phases. Additionally, it faces competition from established players like Awfis, Smartworks and WeWork, particularly in Tier 1 markets.
  • From a valuation perspective too, the IPO seems aggressively priced with a Price-to-Earnings (PE) multiple of 226x based on FY25 earnings, which leaves limited room for significant listing gains.
  • While the long-term outlook for DevX remains promising, short-term gains appear constrained. Historical trends from other co-working providers in India, such as Awfis, Indiqube and Smartworks, show an average listing gain of 4%. Despite their modest listing performances, two of them have delivered strong post-listing returns.
  • Considering these factors, long-term investors may adopt a wait-and-watch approach, with the potential for a better entry point if a meaningful correction occurs post-listing.

About the company

Founded in

14 Sep'17

Managing director

Umesh Uttamchandani

  • Dev Accelerator Ltd, operating under the brand name DevX, provides coworking and managed office spaces tailored for corporates, MNCs and SMEs. It oversees the entire lifecycle of workspace creation and operation, including property sourcing, interior design, infrastructure development, facility management, and offering allied HR and IT support to clients.
  • Currently, DevX manages 28 centres across 11 cities, supporting over 250 clients with 14,144 seats and a total managed area of 860,522 sq. ft. The firm has plans for international expansion, with its first overseas center opening in Sydney, Australia.
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STRENGTHS

  • Market Leadership: DevX is one of the largest operators of managed spaces in Tier 2 markets, with centres across 6 cities. The flexible workspace segment in India has grown significantly, increasing from 3% of the total office stock in 2020 to 7.3% currently, with projections to reach 8-9% over the next five years.
  • Strategic Presence: With its pan-India footprint and the ability to provide highly customizable workspace solutions at competitive prices, DevX has solidified its market position. This is evident from the growth in operational centres, seats and super built-up area, which increased at a CAGR of 23.67%, 16.34%, and 15.24%, respectively, between FY23 and FY25.
  • High Occupancy Rates: DevX boasts the highest occupancy rate among its listed peers at 87.61% in FY25, underscoring the high level of client satisfaction.
  • Strong Performance: DevX has shown impressive growth from FY23 to FY25, achieving a CAGR of 51% in operating revenue and 64% in EBITDA. The EBITDA margin stood strong at 50.64% in FY25 despite expansion-related costs.
  • Improved ROCE and Debt Reduction: Return on Capital Employed (ROCE) has sharply improved to 25.9% in FY25, driven by better asset utilization. The Debt/Equity ratio has significantly reduced from 27.2x in FY23 to 2.4x in FY25, reflecting aggressive deleveraging. IPO proceeds will further reduce leverage.
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RISK FACTORS

  • Profitability Concerns: While DevX has experienced substantial growth in revenue and EBITDA, its profitability remains relatively low, with a PAT margin of just 1% in FY25. The company became profitable in FY24 with a profit of Rs 0.4 crore, which increased to Rs 1.7 crore in FY25.
  • Client Concentration: In FY25, 38.58% of DevX’s operating revenue was derived from its top 10 customers. Any disruption in relationships with these key clients could significantly impact the company's financial performance.
  • Employee Attrition: DevX faced an attrition rate of 13.09%, 52.74% and 33.71% in FY25, FY24 and FY23, respectively. An inability to attract and retain skilled employees may adversely affect the business and operational results.
  • Competitive Landscape: The flexible workspace market is highly competitive, with numerous players such as WeWork, Awfis and Smartworks. This intense competition may limit DevX's pricing power and affect client retention.

Financials

All Values are in Cr.

Issue details

Issue type

Mainstream

Issue size

143.35 crore

Fresh Issue

143.35 crore

OFS

-

Price range

₹ 56 - 61

Lot size

235 shares

Issue Objective

The net proceeds from the fresh issue will be used for the following purposes:

  • Capital expenditure for fit-outs and security deposits for new Centres;
  • Repayment of certain borrowings, including redemption of NCDs; and
  • General corporate purposes.

Dates

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Bidding open

10 Sep'25

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Bidding close

12 Sep'25

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Allotment date

15 Sep'25

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Refund date

16 Sep'25

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Listing

17 Sep'25

IPO Reservations

Qualified institutional buyers

>75%

Non-institutional investors

<15%

Retail individual investors

<10%

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