Dev Accelerator IPO opens for subscription; GMP at 16%: Should you bid?

Dev Accelerator, one of India’s fastest-growing flexible workspace operators, has opened its Rs 143-crore IPO for subscription today. The offer will close on September 12, with shares scheduled to list on the BSE and NSE on September 17. The IPO proceeds will put to use for capital expenditure for fit-outs in the new Centres, repayments of debt, and other general corporate purposes

Dev Accelerator IPO GMP

On Day 1 of issue opening, the company's shares are quoting a GMP of around Rs 9, which indicates a premium of 15% over the issue price. However, it should be noted that GMP is just an indicator of demand and may change depending on the investor sentiments and also market conditions.

Price band and IPO details

The book-built issue is priced in the band of Rs 56–61 per share and comprises a fresh issue of 2.35 crore shares. At the upper price band, Dev Accelerator is valued at 305x FY25 earnings and 3.5x sales, giving it a post-issue market cap of Rs 550 crore. Analysts flag the IPO as expensive compared with peers such as Awfis Space Solutions, which trades at 58x earnings with a higher return profile.

Company overview

Founded in 2017, Dev Accelerator provides managed office solutions, co-working spaces, and design-build services.

Also Read: Urban Company vs Shringar vs Dev Accelerator. Which IPO should investors pick?

The company has carved out a leadership position in Tier-2 markets while maintaining a presence in major metros such as Delhi NCR, Mumbai, Hyderabad, and Pune. As of May 2025, it operated 28 centres across 11 cities with 14,144 seats and over 8.6 lakh sq. ft. under management.

Its focus is on large corporations, offering fully customized offices with lease terms of 5–9 years and lock-in periods of 3.5–5 years. The company also offers facility management, payroll processing, and IT/ITES services through its subsidiaries. Clients include large MNCs, domestic corporates, and SMEs.

Financials

Revenues rose 47% year-on-year to Rs 1,59 crore in FY25, while consolidated profit after tax stood at Rs 1.8 crore, up from Rs 40 lakh in FY24. The turnaround follows heavy losses in FY23. Despite growth, margins remain thin, with PAT margin at just 1.1%.

Strengths

The company’s long-term contracts provide stable revenue visibility. Its high occupancy levels (87% in FY25) and strong foothold in Tier-2 cities position it well to benefit from the rapid expansion of India’s flexible office market, expected to nearly double over the next five years. Diversification into IT, payroll, and facility management services adds to client stickiness.

Risks

The company remains dependent on a limited set of centres, especially in Gujarat, which contributed over 30% of FY25 revenues. Profitability is still fragile, with heavy depreciation and finance costs eating into earnings. It also relies on leased properties, exposing it to rental cost escalations. High client concentration and competition from larger peers are additional risks.

Should you subscribe?

Anand Rathi Research has recommended a “Subscribe – Long Term” rating on the IPO. "While near-term valuations look stretched, the firm believes DevX’s leadership in Tier-2 markets and expansion into new centres, including its first international project in Sydney, provide a structural growth story."

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)