Dev Accelerator (DevX)
Dev Accelerator, founded in 2017 and operating under the brand DevX, provides flexible workspaces, managed offices, and fit-out services. As of May 31, 2025, the company manages 28 centres across 11 cities, covering 8.6 lakh sq. ft. with over 14,000 seats. Its client base includes over 250 corporates, SMEs, and MNCs. The ₹143.35-crore initial public offering (IPO) of Dev Accelerator Ltd comprises a fresh issue of 2.35 crore equity shares. The IPO opened on September 10, 2025, and will remain available for subscription until September 12, 2025. The company has set a price band of ₹56–₹61 per share, with a minimum lot size of 2,000 shares.
Company Background & Business Model
-
Incorporation History: Started as Dev Accelerator LLP in 2017; later became Dev Accelerator Pvt. Ltd. and ultimately Dev Accelerator Limited in September 2024.
-
Brand Name: Operates under the brand DevX
-
Service Offerings:
-
Managed office spaces, co-working desks, customized private suites
-
End-to-end solutions including sourcing leased spaces, design & fit-out, tech integration, and day-to-day operations
-
-
Operations Snapshot (as of May 31, 2025):
-
28 centers across 11 cities, including Tier-1 and Tier-2 markets
-
Over 14,144 seats under management with Super Built-up Area ~860,522 sq. ft.
-
More than 250 active clients
-
Occupancy rate around 87%
-
-
Revenue Model:
-
Major revenue from managed space services (~58.8%)
-
Design & execution services contribute ~25.4%
-
Over 55% of revenue comes from IT/ITES clients
-
Operates largely on asset-light leasing models (straight lease & landlord-furnished spaces)
-
Financials (FY2023–FY2025)
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Income | ₹~71.4 cr | ₹110.7 cr | ₹158.9 cr |
| Net Profit | ₹(12.8) cr (loss) | ₹~0.43 cr | ₹~1.74 cr |
| EBITDA | ₹29.9 cr | ₹64.7 cr | ₹80.5 cr |
| Net Worth | ₹1.2 cr | ₹28.8 cr | ₹54.8 cr |
| Total Borrowings | ₹33.2 cr | ₹101 cr | ₹130.7 cr |
-
Valuation at upper price band:
-
P/E ~305× FY25, P/S ~3.5×
-
Post-issue market cap ~₹550 crore
-
Dev Accelerator IPO: Key Details
| Parameter | Detail |
|---|---|
| Company | Dev Accelerator (branded DevX) — flexible workplace / managed office & coworking provider. |
| IPO Type | Book-built issue; fresh issue only (no offer for sale). |
| Total Issue Size | ₹143.35 crore |
| Shares Offered | 2.35 crore equity shares |
| Price Band | ₹56 to ₹61 per share |
| Face Value | ₹2 per share |
| Lot Size | 235 shares per lot (minimum) for retail investors |
| IPO Window | Opens September 10, 2025; Closes September 12, 2025 |
| Tentative Allotment Date | September 15, 2025 |
| Tentative Listing Date | September 17, 2025 (on BSE & NSE) |
| Use of Proceeds | Fit-outs for new centres, security deposits for new centres, repayment / prepayment of certain borrowings (including redemption of NCDs), and general corporate purposes. |
Dev Accelerator IPO GMP (Grey Market Premium) & Subscription Status
-
The GMP has been reported between ₹7-₹11 or so above the upper price band, depending on source and time.
-
As a percentage, it works out to roughly 11-15% premium over upper issue price (₹61), based on different reports.
-
Subscription on Day 1: ~ 5.34× overall by end of Day 1. Retail investors heavily over-subscribed their quota (~19.60×), NIIs also strong (~4.46×), QIBs more modest (~1.16×) till end of Day 1.
-
On Day 2, subscription increased further (e.g. over 7× overall as per some reports) showing growing demand.
Review & Analysis
Strengths / Positives
-
Strong growth momentum: Revenue has been increasing rapidly, showing high growth CAGR over past few years.
-
High occupancy: The company reports good occupancy of its centres which suggests demand for flexible workspace remains strong.
-
Presence across Tier-1 & Tier-2 cities: Diverse geographies, not just concentrated in big metros. That gives growth leverage.
-
Improving profitability: From earlier losses towards positive profit (though margin is thin).
-
Positive analyst outlook from some brokerage houses, recommending “subscribe — long term” given the growth potential.
Risks / Cautions
-
Valuation is steep: P/E ratios very high, especially at upper price band. Investors are paying for growth expectations.
-
Net profits are currently small / thin margins: Profit after tax is small relative to revenue, so profitability cushion is low.
-
Debt / capital intensity: Business requires upfront investment in fit-outs, maintenance, leases etc., which can burden cash flows.
-
Dependence on certain markets: Some concentration of revenues from specific cities or regions. If demand drops, localized risk.
-
QIB / institutional bidding somewhat cautious, which may reflect risk perception among institutional investors.
Should You Consider Bidding?
If you are an investor with a medium-to-long term horizon, and believe in the flexible workspace / co-working sector, Dev Accelerator IPO could offer upside, especially if market conditions are supportive. The GMP indicates expected listing gains, so short-term returns are possible.
But if you are more conservative or want low risk, you would need to weigh the high valuation, thin margins, and possibility that listing gains may not sustain.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
