Upcoming IPO: Dev Accelerator files for public issue to expand operations in co-working spaces, to issue 2.47 cr shares

Upcoming IPO: Dev Accelerator has filed its draft red herring prospectus (DRHP) for an initial public offer (IPO) with the market regulator Securities and Exchange Board of India (SEBI). The company is an office space provider operating under the brand name DevX. It has plans to fuel expansion in the co-working spaces.

The company is promoted by Dev Information Technology. It is listed on the NSE and the BSE, and is a global information technology services company providing cloud services, digital transformation services, enterprise applications services and managed IT services.

Dev Accelerator IPO: Issue size

The IPO consists of a new offering of up to 2.47 crore equity shares each having a face value of ₹2, intended to be listed on the NSE and BSE. 

Dev Information Technology owns a 22% stake in Dev Accelerator. The estimated value of this 22% stake is ₹100 crore.

Dev Accelerator: Registrar and lead managers

Pantomath Capital Advisors Private is the book-running lead manager to the issue while KFIN Technologies is the registrar.

Dev Accelerator: Objective of the issue

The company plans to use the funds raised via the IPO towards funding the capital expenditure for fit-outs in the new centre and for security deposits of the new centre. 

Apart from this, proceeds will be used towards the repayment and/or pre-payment, in full or part, of certain borrowings availed by the company, including redemption of non-convertible debentures; and for general corporate purposes.

Dev Accelerator Finacials

The net profit reported by Dev Accelerator in FY24 stood at ₹44 lakh compared to a loss of ₹12.8 crore in FY23 and a loss of ₹7.5 crore in FY22. 

As part of the key risks to the issue, Dev Accelerator said, “Our company turned PAT positive in fiscal 2024 and we generated positive cash flows from operations for the last three fiscal (2024, 2023 and 2022). However, we cannot assure you that we will sustain profitability going forward.”