This Ashish Kacholia-owned stock has surged 20%; zoomed 147% from IPO price

Awfis Space Solutions shares surged up to 19.99 per cent, hitting all time high at Rs 945.70 per share on the BSE in Thursday’s intraday deals. The stock price surged after the company on Wednesday said that it is expanding its footprint in Bengaluru by unveiling 66,846 square feet (sq ft)of premium workspace.

Since August 6, in past 11 trading days, the stock price of India’s largest network of flexible workspaces provider has rallied 54 per cent. Currently, it is trading 147 per cent higher against its initial public offer (IPO) issue price of Rs 383 per share. The company made its stock market debut on May 30, 2024.

Investor, Ashish Kacholia held 3.35 million equity shares or 4.83 per cent stake in Awfis at the end of June 2024 quarter, the shareholding pattern data shows. Ashish Kacholia’s stake is currently valued at around Rs 310 crore.

Awfis, a network of flexible workspaces, announced the launch of two new centres at Mantri Commerce and Vista Pixel in Bengaluru. The centres offer 39,000 sq ft and 27,846 sq ft built-up areas respectively. 

Both centres provide connectivity to major business districts and are conveniently close to malls, entertainment hubs, and social infrastructure. Upcoming metro lines are set to further enhance accessibility, with the yellow line at Mantri Commerce expected by 2025 and the blue line at Vista Pixel anticipated by 2026, the company said in the statement. 

"We are thrilled to announce our latest additions in Bengaluru, a city at the forefront of the demand for premium Grade A office spaces. With its robust infrastructure development and access to a vast pool of skilled talent, Bengaluru is poised for exponential growth. We are confident that the demand for high-end workspaces will continue to surge in the years to come,” said Amit Ramani, Managing Director and Chairman, Awfis Space Solutions. 

Meanwhile, in April to June quarter of financia year 2024-25 (Q1FY25), Awfis had posted a strong operational performance with revenue grew 37 per cent year-on-year (Y-o-Y) at Rs 258 crore. Operating earnings before interest, tax, depreciation and amortisation (Ebitda) grew at 55 per cent Y-o-Y at Rs 79 crore and operating Ebitda margin improved by 360 basis points Y-o-Y to 30.7 per cent from 27.1 per cent in Q1FY24.

The company operates 112,038 seats across 185 centres and 5.6 million sq. ft. in 17 cities as of June 2024. The company employs an asset-light, risk-averse strategy with its Managed Aggregation (MA) model, which comprises 64 per cent of its centres and 67 per cent of its seats, optimising returns and minimising risk. 

Awfis plans to add 40,000 new seats in FY25, aiming for a total of 135,000 seats by the end of the fiscal year, capitalising on the growing demand for flexible workspaces and solidifying its market leadership.

The company debuted on the bourses in late May this year and has zoomed 147 per cent from its issue price of Rs 383. 

At 12:16 PM; the stock of the company was trading 17 per cent higher at Rs 921.75 per share on the BSE. By comparison, the BSE Sensex was up by 0.25 per cent at 80,105 levels.

Awfis offers a variety of flexible workspace solutions, from individual desks to customised office spaces, tailored for startups, SMEs, large corporations, and multinational companies.