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Dev Accelerator IPO Day 3 Live: The initial public offer (IPO) of Dev Accelerator, which has garnered a strong response from investors, entered its last day of bidding today.

The issue saw 16.08 times subscription as of the second day of the share sale on Thursday. The company's initial share sale received bids for 21,14,04,355 shares against 1,31,47,075 shares on offer, as per NSE data.

The retail portion received a whopping 59.31 times subscription. The category for non-institutional investors got subscribed 15.36 times and the Qualified Institutional Buyers (QIBs) part received 2.40 times subscription.

The price band has been fixed at ₹56 to ₹61 per share.

The company's IPO is entirely a fresh issue of 2.35 crore equity shares worth ₹143.35 crore at the upper end of the price band. At the upper end, the company's market validation is pegged at ₹550 crore.

Dev Accelerator IPO shares are expected to make their stock market debut on September 17.

In the grey market, Dev Accelerator is enjoying a decent grey market premium (GMP). Dev Accelerator IPO GMP today is ₹10. This means that Dev Accelerator IPO listing price could be ₹71, a premium of 16.39%.

Track this space for LIVE updates on Dev Accelerator IPO

As of Fiscal 2025, revenue from operations generated by flexible workspaces in Tier 2 cities stood at ₹803.97 million. Of this, Ahmedabad, Gujarat alone contributed ₹482.84 million, accounting for 30.39% of the total operational revenue — highlighting the company’s strong presence and dependence on Tier 2 markets, particularly in Gujarat.

The company is a leading flexible workspace operator in Tier-2 Indian cities, benefiting from the rapid tripling of demand since 2021. With a customer-first model offering zero-capex customizable offices, quick in-house execution, and integrated services, it ensures strong client appeal. Its diverse property strategies, including the OpCo-PropCo model, boost scalability, while consistently high occupancy rates of over 87% reflect strong demand and customer stickiness. The company’s ambitious expansion plans in both Tier-1 and Tier-2 Indian cities, as well as its first international venture in Sydney, Australia. At the upper band of INR 61, the issue is valued at a P/E ratio of 310.29x, based on FY25 EPS of INR 0.2. We are recommending a “Neutral” rating for this issue.

— Views by Arihant Capital

Dev Accelerator IPO was booked over 39 so far on the third day of the bidding period. Here's how different quotas were subscribed:

QIB: 2.64x

NII: 59.65x

Retail: 125.20x

Employee: 12.81x

Shareholder: 34.86x

Overall: 39.99x

The company has consistently maintained high occupancy rates, reflecting strong customer satisfaction and sustained demand for its services. The occupancy rate stood at 87.61% for FY2025 and 87.19% as of May 31, 2025, underscoring operational stability and market acceptance.

The top 10 customers accounted for 39% of total revenue — meaning loss of one or more customers can dent its topline.

The company incurred a loss of ₹128.30 million in FY2023 and reported a negative EPS for the year. Although it turned profit after tax (PAT) positive in FY2024, there is no certainty that profitability will be sustained in the future. Failure to consistently generate higher revenues or effectively manage operating expenses could negatively impact the company’s business operations, cash flows, and overall financial condition.

“DevX has carved a niche as a Tier-2 market leader in the managed workspace segment, backed by strong occupancies and a clear focus on enterprise-grade solutions. Its multi-model approach ensures a balance between growth and capital efficiency, while key metrics such as revenue and Return on Capital Employed (ROCE) have shown strong improvement. The company’s planned expansion into Tier-1 cities and its upcoming overseas foray add meaningful long-term growth potential. In light of these developments, we recommend a ‘Subscribe’ rating for the IPO,” said Reliance Securities.

India's office market has witnessed significant growth over the past two and a half decades, establishing itself as a prominent player in the global commercial real estate industry.

The top seven markets in India have experienced a tremendous surge in Grade A office stock, growing over 14.5 times—from approximately 59.5 million sq. ft. in 2004 to around 863.9 million sq. ft. as of March 2025.

The rise of the business process outsourcing (BPO) industry in the early 2000s played a pivotal role in attracting major multinational companies to set up operations in the country, subsequently kickstarting the transformation of the office market. What was once a landscape of unorganised standalone buildings has now evolved into Grade A commercial developments owned by reputed developers and institutional investors.

Today, India’s office market presents a wide array of opportunities for companies seeking to expand their operations. With a robust economy, abundant cost-effective talent pool, and a favourable business environment, India has become an attractive destination for both domestic and international companies looking to establish a presence.

Looking ahead, Grade A stock is projected to grow at a CAGR of ~6.7% between March 2025 and December 2027, reaching approximately 1,033 million sq. ft. by the end of the period.

Dev Accelerator IPO was booked over 26 so far on the third day of the bidding period. Here's how different quotas were subscribed:

QIB: 2.42x

NII: 32.84x

Retail: 88.57x

Employee: 8.56x

Shareholder: 22.49x

Overall: 26.06x

At the upper price band of ₹61, the stock is trading at a Price/Sales of 3.5x and EV/EBITDA of 6.6x, based on post-issue capital.

The company turned profitable in FY24 and reported a modest profit of ₹1.8 crore in FY25. The lower profit is primarily due to higher interest and depreciation costs arising from lease liabilities.

Revenue has, however, registered an impressive CAGR of over 50% between FY23 and FY25. That said, the Debt-to-Equity (D/E) ratio remains high at 2.4x as of FY25, though it is expected to moderate to ~1x post-issue.

Promoter holding will reduce to approximately 37% post-issue due to dilution.

We maintain a NEUTRAL view on the company and prefer to monitor its performance vis-à-vis major peers post listing.

— Views by SBI Securities

Here's how Dev Accelerator stacks up against its listed peers — Take a look.

As of May 31, 2025, DevX had over 250 clients, including domestic corporations and MNCs such as QX Global Services Private Limited, Paperchase Accountancy India Private Limited, Zomato Limited and Wipfli India LLP. The clientele highlights our ability to cater to the diverse needs of various industries and business sizes.

The company operates close to a million square feet across 25–28 centres in 10–11 cities, offering 12,700–14,100 seats and serving 230–250+ clients. It has a strong presence in Tier 1 markets such as Delhi-NCR, Mumbai, Pune, and Hyderabad, alongside leadership in Tier 2 cities including Ahmedabad, Vadodara, Rajkot, Surat, Udaipur, Jaipur, and Indore.

The IPO is a fresh issue, meaning all the capital raised will go directly to the company. The funds are earmarked for strategic purposes, including fit-outs for new centers and debt repayment. This directly supports DevX’s growth plans while also helping to strengthen its balance sheet and improve overall financial health.

Dev Accelerator Ltd. (DevX) offers a compelling long-term investment opportunity in India’s growing flexible workspace sector. Founded in 2017, the company operates 28 centers across 11 cities, serving 14,000+ seats with an asset-light, scalable model. Its ₹143.35 Cr IPO is entirely a fresh issue, aimed at funding expansion—including new centers in Surat and Sydney. Backed by Dev Information Technology Ltd., DevX benefits from strong operational support and a diversified client base. While competition and real estate dependencies pose risks, the company’s growth trajectory and sector momentum support a ‘Subscribe’ rating for investors seeking exposure to the future of the hybrid work model in India.

— Views by Lakshmishree Investment

Dev Accelerator (DevX) is a flexible workspace and managed office operator that builds and runs enterprise-grade, built-to-suit offices and coworking centers across India. The company has strong depth in Tier 2 cities, alongside a strategic presence in major Tier 1 hubs.

Its business model spans end-to-end delivery—from sourcing and designing spaces to fit-outs, facility management, and technology-enabled operations. DevX caters primarily to large corporates, Global Capability Centers (GCCs), multinational corporations (MNCs), and scaling SMEs seeking asset-light, customizable workplaces.

The issue saw 16.08 times subscription as of the second day of the share sale on Thursday. The company's initial share sale received bids for 21,14,04,355 shares against 1,31,47,075 shares on offer, as per NSE data. The retail portion received a whopping 59.31 times subscription. The category for non-institutional investors got subscribed 15.36 times and the Qualified Institutional Buyers (QIBs) part received 2.40 times subscription.

Dev Accelerator IPO GMP is ₹10. With the price band of 61.00, Dev Accelerator IPO's estimated listing price is ₹71.The expected percentage gain per share is 16.39%.

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