Dev Accelerator, also known as DevX, has launched its ₹143.35 crore IPO, open for subscription from September 10 to 12, 2025. Shares are priced in a ₹56–₹61 band, and the listing date is September 17, 2025, on BSE and NSE.
The issue is entirely a fresh issue of 2.35 crore shares. At the upper band, the IPO values the company at 305x its FY25 earnings, far higher than its peer Awfis Space Solutions at 58x.
Strong retail participation has already pushed oversubscription beyond 7x by Day 2, with the Dev Accelerator IPO GMP suggesting a potential listing price near ₹70.
This IPO offers exposure to India’s fast-growing flexible workspace sector, but investors must weigh high valuations and a thin profit margin against strong demand and sector growth.
Section 1: The Business of Dev Accelerator
Company Overview
Founded in 2017 and headquartered in Ahmedabad, Dev Accelerator provides flexible workspace solutions under an “asset-light” model. The company is promoted by Dev Information Technology Ltd.
As of May 2025, Dev Accelerator operated 28 centers across 11 cities, managing 8.6 lakh sq. ft. and 14,144 seats. Its core strength lies in Tier-2 markets, though it maintains presence in metros like Mumbai, Delhi NCR, and Pune.
Business Model
The company works as a real estate-as-a-service provider with three segments:
· Managed Offices – Customized corporate spaces (58.8% revenue)
· Design & Build Services – Fit-out execution projects (25.4% revenue)
· Co-working Spaces – Shared workspaces for SMEs/freelancers (5.6% revenue)
This B2B-centric model ensures revenue stability with long-term contracts (5–9 years) and consistently high occupancy rates of 87%.
Section 2: Dev Accelerator IPO Key Details
· Issue Size: ₹143.35 crore
· Price Band: ₹56–₹61 per share
· Lot Size: 235 shares (₹14,335 minimum investment)
· Face Value: ₹2 per share
· Listing: BSE & NSE
· Registrar: KFin Technologies
· Lead Manager: Pantomath Capital Advisors
· Promoter Holding: 49.80% pre-IPO → 36.80% post-IPO
Important Dates
· Issue Opens: Sept 10, 2025
· Issue Closes: Sept 12, 2025
· Allotment Finalization: Sept 15, 2025
· Refund/Demat Credit: Sept 16, 2025
· Listing Date: Sept 17, 2025
Utilization of Proceeds
· ₹73.12 crore – Expansion & security deposits
· ₹35 crore – Debt repayment
· Remaining – General corporate purposes
This focus on debt reduction signals an intent to strengthen the balance sheet and reduce financial risk.
Section 3: Dev Accelerator IPO GMP – Market Sentiment Indicator
The Dev Accelerator IPO GMP (Grey Market Premium) has been volatile but consistently positive:
· Day 1: ₹9 (13% premium, indicating ~₹70 listing price)
· Day 3: ₹7 (11% premium)
This shows healthy retail excitement, though experts warn that GMP is speculative and should not be the sole basis for investing.
Section 4: Subscription Status
· Retail investors are driving demand, with oversubscription of 27x by Day 2.
· HNI participation is strong at 6.40x.
· QIB response remains cautious at just 1.16x, reflecting concerns about valuations and profitability.
Section 5: Financial Performance
Dev Accelerator’s turnaround is notable:
· Revenue up 47% YoY in FY25.
· PAT improved sharply, but margins remain thin at 1.1%.
· High leverage (Debt-to-equity 2.39x) raises concerns.
Section 6: Strengths vs Risks
Strengths
· Leadership in Tier-2 flexible workspace markets
· Strong 87% occupancy rates
· Stable B2B model with long contracts
· Expansion into international markets (Sydney project planned)
Risks
· High valuation: P/E of 305x FY25 EPS vs peer Awfis at 58x
· Client concentration: Top 10 contribute 38% of revenue
· Debt dependency: Expansion heavily reliant on borrowings
· Leased model risk: Exposure to rising rentals and contract terminations
Section 7: Expert Opinions
· Anand Rathi, Reliance Securities, BP Equities – Subscribe for long term citing strong business model and expansion prospects.
· SBI Securities – Neutral, pointing to stretched valuations and fragile profitability.
Consensus: High growth potential, but near-term risks make it suitable only for long-term investors with high risk appetite.
Section 8: How to Apply & Check Allotment
Applying for the IPO
1. Login to your broker’s platform.
2. Select Dev Accelerator IPO.
3. Enter lots (minimum 235 shares) and bid price.
4. Approve UPI mandate before Sept 12.
Note: Oversubscription reduces allotment probability, so applying for multiple lots doesn’t increase chances.
Checking Allotment Status (Sept 15, 2025)
· Registrar’s Website (KFinTech): Enter PAN/Application No.
· BSE Allotment Page: Select IPO and enter details.
Final Verdict: Should You Invest?
The Dev Accelerator IPO presents a classic high-growth but high-risk case. Its strong Tier-2 positioning, stable B2B model, and debt-reduction strategy are positives. Yet, the extreme valuation, thin margins, and high leverage make it a risky short-term bet.
· For long-term investors: A compelling growth story, if you can handle volatility.
· For listing gains: Risky, as valuations may cap upside despite a positive Dev Accelerator IPO GMP.
