Dev Accelerator Limited is coming up with an IPO with a fresh issue of 24,700,000 shares. The company aims to invest in fit-outs, repay borrowings, and support general corporate purposes. 

Dev Accelerator IPO – Important Dates 

Dev Accelerator Limited IPO – Company Profile 

Dev Accelerator Limited is India’s leading flex space operator, offering Built-to Suit Managed Office Solutions across 15 submarkets, with 25 Centers and 12,691 seats, expanding further with international and domestic locations. 

Their clientele includes large corporates, MNCs, and SMEs, for whom they provide flexible office solutions, managed office spaces, coworking spaces, and design services through their subsidiary, Neddle and Thread Designs LLP. 

They provide managed office spaces, coworking spaces, and design services through Neddle and Thread Designs LLP, focusing on large corporates. Their offerings ensure stable revenue from long-term leases and customised workspace solutions for diverse clients. 

Dev Accelerator Ltd IPO Fundamental Analysis 

Dev Accelerator Limited’s financial analysis reveals a mixed performance. Revenue has consistently grown while equity, liabilities, and assets have increased. Profitability and EPS have improved, though the debt-equity ratio and RoNW indicate challenges. 

• Revenue Trend: The revenue decreased from ₹308.83 million in March 2022 to ₹699.11 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 1,080.87 million.
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹(75.12) million in March 2022 to ₹4.37 million by March 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹(1.67) in March 2022 to ₹0.08 by March 2024, reflecting higher earnings per share for investors. 

• Return on Net Worth (RoNW): The RoNW has reduced from 353.39% to 1.50%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 

Dev Accelerator IPO Financial Analysis 

Dev Accelerator Limited IPO Peer Comparison 

Dev Accelerator Limited shows strong revenue growth, positive EPS, and improving profitability, though its return on net worth remains low. Awfis Space Solutions Ltd, in comparison, has higher revenue but negative profitability and returns. 

Dev Accelerator Ltd IPO Objective 

The main objective of Dev Accelerator Limited is to invest in new Centre fit-outs and security deposits, along with repaying or pre-paying borrowings, including the redemption of non-convertible debentures (NCDs). 

1. Capital expenditure for fit-outs in the new Centres and for security deposits of the new Centres: The company intends to utilise INR 68.96 crores towards capital expenditure, with INR 60.78 crores for fit-outs and INR 8.18 crores for security deposits, supporting the establishment of new centres in key cities. 

2. Repayment and/or prepayment, in whole or part, of certain borrowings availed by the company, including redemption of NCDs: 

(i) Repayment and/or prepayment of certain borrowings, in whole or part, availed by the company: The company plans to utilise INR 30 crores from the Net Proceeds for the repayment, prepayment, or redemption of certain borrowings, including accrued interest while considering prepayment charges and refinancing options. 

(ii) Early Redemption of NCDs in part: The company aims to utilise INR 30 crores from the Net Proceeds for the early redemption of unlisted, unrated NCDs, reducing indebtedness, lowering debt servicing costs, and improving leverage for future business growth opportunities. 

3. General corporate purposes: The company will deploy the balance of funds for general corporate purposes, including funding organic and inorganic growth, acquisitions, marketing, working capital, lease payments, business development, salaries, taxes, and other operational expenses. 

Dev Accelerator IPO Risks And Challenges 

Dev Accelerator Limited’s risk includes dependency on IT/ITES sectors, potential demand downturns, client terminations, high capital expenditure, and reliance on debt or equity financing, which could negatively affect revenue, growth, and financial stability. 

• The company’s business highly depends on demand from specific industries, particularly IT/ITES. A downturn in these sectors, economic slowdowns, or reduced client spending could negatively impact revenue, occupancy, and overall business performance. 

• The company’s revenue primarily comes from managed office spaces. A decrease in demand, client terminations, or increased competition could negatively impact growth. Capital expenditure and securing new clients are key challenges to sustaining profitability. 

• The company faces significant capital expenditure and working capital needs, relying on debt or equity financing. Any liability increase, cost overruns, or payment delays could adversely impact financial conditions, operations, and cash flows. 

Dev Accelerator Ltd IPO – Industry & Market Potential 

India’s office market has grown significantly, with Grade A office stock expanding 14-fold from 2004 to 2024. Driven by BPO growth, it offers expansion opportunities, projected to grow at 6.7% CAGR by 2026. 

India’s flexible office sector, with 65 mn sq ft of operational space, is growing rapidly, comprising 6.3% of total office stock. With a 26% CAGR since 2018, it is projected to surpass 122 mn sq ft by 2028. 

India’s design & build market, valued at INR 12,000–13,000 crore in 2024, is projected to grow at 8.5-9% CAGR, reaching INR 19,500–20,000 crore by 2028. DevX’s serviceable market in 2024 is INR 240-390 crore. 

Dev Accelerator Limited IPO – Type of Offer 

Dev Accelerator Limited is coming up with an IPO with a fresh issue of 24,700,000 shares. The company aims to invest in fit-outs, repay borrowings, and support general corporate purposes. 

Dev Accelerator IPO Offer Size 

The offer size of Dev Accelerator Limited is yet to be announced, consisting of a fresh issue of 24,700,000. The company aims to invest in fit-outs, repay borrowings, and support general corporate purposes. 

Dev Accelerator Limited IPO Allotment Structure 

Dev Accelerator Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for Dev Accelerator IPO?

To apply for the Dev Accelerator Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Dev Accelerator Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Dev Accelerator Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Dev Accelerator IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Dev Accelerator Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Dev Accelerator Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Dev Accelerator Limited IPO:

● Registrar’s Website: Visit the website of KFIN Technologies Limited, the registrar of the Dev Accelerator Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Dev Accelerator Ltd IPO Offer Registrar

The registrar for the Dev Accelerator Limited IPO is KFIN Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

KFIN Technologies Limited

Selenium Tower-B,

Plot No. 31 & 32, Gachibowli,

Financial District, Nanakramguda,

Serilingampally,

Hyderabad – 500032, Telangana

Tel: 040-67162222/18003094001

E-mail: [email protected]

Website: www.kfintech.com 

Dev Accelerator IPO – FAQs