 The shares of Awfis Space Solutions Ltd., a diversified commercial services company, reached an all-time high on Thursday following the company’s announcement of 66,846 square feet of new workspace in Bengaluru.Â
The firm from Bengaluru, whose shares went public on May 30, 2024, saw a sharp increase in opening prices today, rising 16.6% to touch ₹945 on the BSE. In light of this, Awfis’s stock has increased by 154.3% since its all-time low of ₹371.75 on June 4, 2024. With today’s share price of ₹893.15, the market capitalization of the firm is ₹6,200.22 crore.
Risk Averse Approach
On Wednesday, August 21, the flexible workspaces provider announced the opening of two additional locations in Bengaluru, at Mantri Commerce and Vista Pixel. The built-up areas of the centers are 39,000 square feet and 27,846 square feet, respectively.
Bengaluru, according to Amit Ramani, MD and Chairman of Awfis Space Solutions, is heading for rapid expansion. The need for upscale workstations will only grow in the upcoming years. Our new locations are carefully planned to meet this expanding need. Awfis operated 1,12,038 seats in 185 centers as of June 2024, encompassing 5.6 million square feet in 17 locations.
The company claims that its managed aggregation (MA) model, which it refers to as a “asset-light and risk-averse approach,” covers 64% of its centers and 67% of its seats. It plans to add 40,000 more seats in FY25, making 135,000 total seats by the conclusion of the fiscal year.
Awfis Space Solutions was the subject of a study by brokerage Nuvama Wealth and Investment from August 20 to August 20 that revealed a 68% CAGR growth in demand for flexible space among startups since 2019.
It has maintained its “BUY” recommendation on the shares, with a target price of ₹1,013, up 35% from the August 20 closing price.AWFIS has estimated a 40,000 seat increase for FY25. 15,510 units.Â
Green Leases
16,522 more have signed letters of intent and are awaiting discussions. An additional 50,000 seats can be accommodated each year by the organization’s human resources. We want to add 35,000/33,000 seats in FY26E/FY27E. According to Amit Agarwal and Rishith Shah’s research for Nuvama, we expect total seats to reach 203,030 by March 2027, showing a CAGR of 28.8% during FY24-27E.
In the first half of 2024, India’s office market activity climbed to 34.7 million square feet, up 33% from 26.1 million square feet in the same period the previous year, according to a recent Knight Frank analysis.
“Increasing space uptake from domestic origin occupiers, the growth of Global Capability Centers (GCCs), and the increasing prominence of sustainable elements, such as “green leases,” will characterize the Indian office market.” It is anticipated that the occupier segment’s demand base diversification would continue, strengthening the commercial real estate market.
Through 2024, occupier plans that take a “core plus flex” approach are likely to be popular, according to Vimal Nadar, Senior Director & Head of Research at Colliers India, who talked with Fortune India.
