Dev Accelerator IPO opens on Sept 10; key risks, strengths you must know

Dev Accelerator IPO will open for bidding on Wednesday, September 10, 2025 and close on Friday, September 12, 2025

Dev Accelerator IPO: The initial public offering (IPO) of flexible office spaces provider Dev Accelerator will open for bidding on Wednesday, September 10, 2025. The public issue worth ₹143.35 crore comprises a fresh issue of 23.5 million equity shares, with no offer for sale (OFS) component.  

 

The three-day subscription window is scheduled to close on Friday, September 12, 2025. Dev Accelerator IPO is available at a price band of ₹56-61 per share, with a lot size of 235 shares. 

 

Kfin Technologies is the registrar for the issue. Pantomath Capital Advisors is the sole book-running lead manager.

 

According to the red herring prospectus (RHP), the company plans to use ₹73.1 crore from the net issue proceeds for capital expenditure for fit-outs in the proposed centres, and ₹35 crore for repayment of debt availed by the company, including redemption of non-convertible debentures. The remaining funds will be used for general corporate purposes. 

 

Here are the key risks associated with investing in Dev Accelerator IPO:

Uncertainty in maintaining profitability: The company reported a loss of ₹12.83 crore in the financial year 2022-23 (FY23) and recorded a negative earnings per share (EPS). However, the company returned to profitability in FY24 with a positive profit after tax (PAT); there is no certainty that it can maintain this trend. "Our inability to sustain profitability by generating higher revenues and managing expenses may have an adverse effect on our business, results of operations, cash flows and financial condition," the company said in DRHP.

 

Risk of title and ownership issues of centres: The company does not own the land or buildings where its centres operate. Any issues with the legal title or ownership of these properties could lead to the closure of Centres, incur significant relocation costs, or cause termination of client agreements. 

 

Dependence on securing preferred properties: The company says its success largely depends on its ability to identify and secure preferred properties in key locations at competitive rental rates and favourable commercial terms. It plans to allocate ₹73.11 crore from the net issue proceeds towards capital expenditure for fit-outs at four proposed Centres. However, agreements have not yet been signed for two of these locations. The company added that any failure to secure these properties could adversely impact its business.

 

Revenue concentration risk: Dev Accelerator's top 10 customers accounted for 38.58 per cent, 37.18 per cent, and 37.93 per cent of its revenue from operations in FY25, FY24, and FY23, respectively. Additionally, its top 20 customers contributed 54.13 per cent, 53.53 per cent, and 53.33 per cent during the same periods. According to the company, any decline in revenue or sales from one or more key customers could negatively impact its business.

 

Concentration in a few cities: As of FY25, the company generated ₹80.39 crore in revenue from its flexible working spaces located in Tier 2 cities, with Ahmedabad, Gujarat alone contributing ₹48.28 crore - accounting for 30.39 per cent of total revenue from operations. A large share of the company’s revenue is therefore concentrated in a limited number of cities.   ALSO READ | Shringar House of Mangalsutra IPO: Key risks, strengths you must know

Here are the key strengths of Dev Accelerator IPO, as outlined in the RHP:

Strong market presence and high occupancy: Dev Accelerator holds a leading position as one of the largest managed workspace operators in Tier 2 markets and is well placed to benefit from industry tailwinds and the growing demand for flexible workspaces across India. The company operates in 11 cities across India, managing 860,522 sq. ft. of flexible workspace. With consistently high occupancy rates above 80 per cent, its strong market understanding and strategic locations drive customer satisfaction and growth.

 

Customer-centric business model: According to DRHP, Dev Accelerator offers fully customisable office spaces with no upfront capital costs, allowing clients to focus resources on their core business. With in-house design teams delivering tailored solutions within 90 to 120 days, it ensures quality and quick turnaround, supported by comprehensive facility management services.

 

Strong financial and operating metrics: The company has witnessed rapid growth, with Operational Centres, seats, and super built-up area increasing at compound annual growth rate (CAGR) of 23.67 per cent, 16.34 per cent, and 15.24 per cent, respectively, from FY23 to FY25. Revenue from operations grew at a CAGR of 50.75 per cent, reaching ₹158.87 crore in FY25, strengthening its financial position.

 

Experienced leadership: Additionally, the company is led by promoters with over 21 years of experience in the flexible workspace sector and a senior management team with over 57 years of combined industry expertise. This provides a competitive edge in expanding both existing and new markets.