About Dev Accelerator Limited – Mainboard IPO
Dev Accelerator Limited (DevX) is a flexible workspace solutions provider based in Ahmedabad, Gujarat, offering managed offices, co-working spaces, design and execution services, facility management, payroll management, and IT/ITeS services. Founded in 2017, the company operates 28 centres across 11 cities in India, managing over 14,144 seats and 806,635 sq. ft. as of August 31, 2024, with plans for further domestic and international expansion.
READ DRHP HERE: SEBI|DRHP|DEV ACCELERATOR|
IPO Details
| Key Points | Information |
|---|---|
| IPO Price Band | ₹56 – ₹61 per share |
| Minimum Lot Size | 235 shares (about ₹14,335 at highest price) |
| Issue Size | ₹143.35 crore (100% fresh issue) |
| Face Value | ₹2 per share |
| Stock Exchanges | BSE and NSE (Mainboard IPO) |
| Registrar | Kfin Technologies Limited CLICK HERE |
| Book-running Managers | Pantomath Capital Advisors Private Limited |
| Offer Structure | QIB – 75%, NII – 15%, Retail – 10% |
IPO Timeline
| Event | Date |
|---|---|
| IPO Opens | 10th September 2025 |
| IPO Closes | 12th September 2025 |
| Allotment Date | 15th September 2025 |
| Refunds/Unsuccessful Bids | 16th September 2025 |
| Shares in Demat Account | 16th September 2025 |
| Listing Date | 17th September 2025 |
What Is the Money Used For?
- Fit-outs and security deposits for new centres (₹73.12 crore).
- Partial or full repayment of borrowings and redemption of NCDs (₹35 crore).
- General corporate purposes.
Key Financials (as per RHP and Public Prospectus)
| Financial Metric | FY23 (₹ Cr) | FY24 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 69.91 | 108.09 | 158.88 |
| EBITDA (Profit from Operations) | 29.88 | 64.74 | 80.46 |
| EBITDA Margin (%) | 42.7% | 59.9% | 50.6% |
| Profit After Tax (PAT) | -12.83 | 0.44 | 1.77 |
| PAT Margin (%) | -17.9% | 0.4% | 1.0% |
| Return on Capital Employed (ROCE) | 3.7% | 17.3% | 25.9% |
| Debt to Equity Ratio | 27.2 | 3.5 | 2.4 |
Explanation of Financial Terms
- Revenue: Total sales from services and operations
- EBITDA: Earnings before interest, taxes, depreciation, and amortisation
- PAT: Net profit after all expenses
- Margins: Profitability ratios as a percentage of revenue
- ROCE: Efficiency in using capital
- Debt to Equity: Leverage ratio indicating reliance on debt
Analysis
Dev Accelerator has demonstrated strong revenue CAGR of ~50.8% over FY23–25, driven by expansion in Tier-2 and Tier-1 cities. EBITDA margins remained robust above 50%, reflecting efficient operations despite rapid scaling. The company achieved a turnaround from a ₹12.83 crore loss in FY23 to ₹1.77 crore profit in FY25, while deleveraging significantly, reducing Debt/Equity from 27.2x to 2.4x.
Why Some Investors Like This Mainboard IPO
- Leadership position among Tier-2 flex-space operators with high occupancies (87.6% in FY25)
- Diversified revenue streams including design, facility management, payroll, and IT/ITeS services
- Zero-capex model for clients, enabling plug-and-play offices
- Experienced promoters with 21+ years in the workspace sector
- Capital infusion to further reduce debt and fund expansion
Points That Need Caution
- High leverage: Debt/Equity remains elevated at 2.4x despite reduction
- Thin PAT margins (~1%) make profitability sensitive to cost overruns or economic downturns
- Client concentration: Top 10 clients contributed ~39% of FY25 revenue
- Lease-dependent model exposes the company to rental rate fluctuations and lease disputes
- Intense competition from Awfis, Smartworks, Indiqube, and emerging regional players
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.