Dev Accelerator Limited (DevX) is gearing up for its much-anticipated Initial Public Offering (IPO) to raise ₹143.35 crore through a fresh issue of 2.35 crore shares. As a fast-growing provider of coworking and managed office spaces, Dev Accelerator has expanded across India and is poised for further growth. This Dev Accelerator IPO review provides an in-depth analysis covering IPO dates, price, GMP, financials, competitive strengths, reasons to invest, risks, and subscription guidance.
About Dev Accelerator Limited
Founded in 2017, Dev Accelerator Limited operates under the brand DevX and offers coworking and managed office spaces for corporates, MNCs, and SMEs. The company currently manages 28 centers in 11 cities, serving over 250 clients, with 14,144 seats and a total managed area of 860,522 sq. ft. The company plans to expand internationally, with its first overseas center in Sydney, Australia.
Dev Accelerator also offers design and execution services through its subsidiary Neddle and Thread Designs LLP, making it a holistic workspace solutions provider.
Competitive Strengths
- Rapid Expansion: Presence in multiple metro and Tier-1 cities with plans to expand globally.
- Strong Client Base: Over 250 clients, including corporates and startups.
- High-Quality Offerings: Offers flexible lease terms and customizable spaces, catering to evolving workplace needs.
- Design and Execution Expertise: End-to-end workspace design services.
- Growing Revenue and Profitability: FY25 revenue grew 62%, and PAT increased by 303% YoY.
Dev Accelerator IPO Issue Details
| Particulars | Details |
|---|---|
| IPO Date | September 10, 2025 to September 12, 2025 |
| Listing Date | September 17, 2025 (Tentative) |
| Price Band | ₹56 to ₹61 per share |
| Face Value | ₹2 per share |
| Lot Size | 235 shares |
| IPO Size | ₹143.35 crore (Fresh Issue only) |
| Total Shares Offered | 2.35 crore shares |
| Listing | BSE, NSE |
| Promoter Holding (Pre/Post) | 49.80% / 36.80% |
| Book Running Lead Manager | Pantomath Capital Advisors Pvt. Ltd. |
| Registrar | KFin Technologies Ltd. |
Financial Highlights (₹ in Crore)
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 71.37 | 110.73 | 178.89 |
| EBITDA | 29.88 | 64.74 | 80.46 |
| PAT | -12.83 | 0.43 | 1.74 |
| Total Assets | 282.42 | 411.09 | 540.38 |
| Net Worth | 1.22 | 28.79 | 54.79 |
| Debt | 33.20 | 101.05 | 130.67 |
Observation: Dev Accelerator has shown significant revenue and EBITDA growth. However, profitability remains low, with a PAT margin of only 1% in FY25.
Objects of the Issue
The net proceeds will be used for:
- Capital expenditure for fit-outs and security deposits of new centers – ₹73.12 Cr.
- Repayment/prepayment of borrowings and NCD redemption – ₹35 Cr.
- General corporate purposes.
P/E Ratio & Peer Comparison
| Company | P/E (x) |
|---|---|
| Dev Accelerator (Post IPO) | 315.45 |
| Smartworks Coworking | 102.5 |
| Awfis Space Solutions | 189.6 |
| Industry Average | ~200 |
Analysis: Dev Accelerator’s P/E of 315x is significantly above peers and industry average, making valuation expensive.
Reasons to Invest
- High Growth Market: Flexible workspace demand is rising, driven by remote and hybrid work.
- Geographic Expansion: Entry into Sydney, Australia shows global ambition.
- Strong Brand Presence: DevX is a recognized player in the coworking space segment.
- Debt Reduction Plan: IPO proceeds will reduce leverage.
Risk Factors
- High Valuation: At 315x P/E, the stock is richly valued.
- Thin Margins: Despite revenue growth, PAT margin is only 1%.
- High Debt: Debt-to-equity ratio is 2.39x.
- Competitive Industry: Coworking is a competitive space with WeWork, Awfis, and Smartworks.
- Execution Risk: Aggressive expansion may strain resources.
Grey Market Premium (GMP)
As of early September 2025, Dev Accelerator IPO is reportedly trading at a GMP of ₹15-18 per share, indicating modest listing expectations.
How to Apply for Dev Accelerator IPO
Investors can apply through:
- UPI via broker apps (Zerodha, Groww, Angel One, etc.)
- ASBA facility via internet banking.
Conclusion – Subscribe or Avoid?
Dev Accelerator has strong growth potential, expanding rapidly in India and abroad. However, the IPO is highly priced with a P/E much higher than peers, and profitability is still at a nascent stage.
I would personally like to avoid such IPOs for now.
FAQs
1. What is the Dev Accelerator IPO price band?
₹56 to ₹61 per share.
2. When is the Dev Accelerator IPO open and close date?
Opens on September 10, 2025, and closes on September 12, 2025.
3. How much is the minimum investment for retail investors?
₹14,335 for one lot (235 shares).
4. When will Dev Accelerator list on the stock exchange?
Tentative listing date is September 17, 2025.
5. Who are the lead manager and registrar for this IPO?
Pantomath Capital Advisors Pvt. Ltd. (Lead Manager) and KFin Technologies Ltd. (Registrar).
6. What will IPO proceeds be used for?
Fit-outs, debt repayment, and general corporate purposes.
7. Is Dev Accelerator IPO good or bad for investment?
High growth potential but very high valuation. Investors can take a call post listing if available at discounted price.
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