AWFIS

Jan 5 (Reuters) - Awfis Space Solutions Ltd AWFI.NS:

• RAVI DUGAR RESIGNS AS CFO

• APPOINTS SUMIT ROCHLANI AS CHIEF FINANCIAL OFFICER

Source text: ID:nnAZN4RR1K9

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** Awfis Space Solutions AWFI.NS falls 6.9% to 587.7 rupees; marks biggest intraday pct loss in more than a year

** Workspace solutions provider's Q2 consol profit slumps 59% y/y, hurt by spike in expenses; rev up 25%

** YTD, AWFI slips 19%

(Reporting by Aleef Jahan)

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Adds stock moves in paragraph 1 and 2, recasts throughout

By Meenakshi Maidas

Oct 10 (Reuters) - WeWork India Management WEWO.NS shares settled 3% lower in their trading debut on Friday, valuing the co-working space provider at 84.25 billion rupees (about $950 million), as investors worried about steep valuation and governance risks.

The shares opened barely above the IPO offer price of 648 rupees and fell as much as 5.2% to 614.25 rupees.

The firm, which licenses its brand from its now-bankrupt U.S. namesake WeWork Global, raised about $338.16 million in its IPO that was subscribed 1.15 times, driven largely by institutional bids.

"The market was not very comfortable with the valuation, and WeWork is now facing the heat," said Aishvarya Dadeech, chief investment officer at Fident Asset Management.

In terms of growth expectations too, WeWork appears less attractive than peers, Dadeech said, referring to projected revenue growth of 22% over fiscal years 2023 to 2025, behind listed peers such as Smartworks Coworking Spaces SMAW.NS, IndiQube Spaces IDIQ.NS and Awfis Space Solutions AWFI.NS.

WeWork India's listing came at a busy time for India's primary market. On Thursday, LG Electronics India LGEL.NS was bid 54.02 times, becoming the most subscribed billion-dollar IPO in nearly two decades, while Tata Capital's TATC.NS IPO drew bids worth $1.24 billion.

Beyond a crowded IPO market, WeWork India faces deeper challenges - from corporate governance concerns to questions over its ability to sustain operations and fund expansion amid slowing demand as well as rising competition from lean, profitable rivals.

Proxy advisor InGovern Research Services warned investors of WeWork India's fragile financials, including negative cash flow, high lease liabilities, and the absence of a fresh capital infusion.

WeWork India did not immediately respond to a request for comment.

The company operates flexible offices across eight major Indian cities, competing with peers such as Smartworks, which has risen 35% since its July debut, and IndiQube Spaces, which fell 15% after listing but has since recovered to trade 4% higher than its listing price.

Smartworks has a market capitalization of 68.9 billion rupees, while IndiQube is valued at 47.6 billion rupees, according to exchange data.

($1 = 88.6780 Indian rupees)

(Reporting by Meenakshi Maidas and Yagnoseni Das in Bengaluru; Editing by Sonia Cheema and Ronojoy Mazumdar)

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Sept 29 (Reuters) - WeWork India Management WEWO.NS has set a price band of 615-648 rupees per share on Monday for its initial public offering, targeting a valuation of 86.85 billion rupees ($979.61 million), according to Reuters calculations.

The IPO of the Indian unit of U.S.-based shared office space provider, which is majority-owned by Embassy Group EMBA.NS, will open for retail investors on October 3, with anchor investors invited to submit bids starting October 1, a newspaper advertisement showed earlier in the day.

The IPO comes at a time when coworking spaces are experiencing a strong revival, driven by companies embracing hybrid work models after years of remote work.

WeWork India filed its draft papers for the IPO in early February. The 30-billion-rupee offering consists of 35.4 million shares held by Indian real estate firm Embassy Group and 10.9 million shares held by We Work's affiliate 1 Ariel Way Tenant.

The company does not plan to issue any fresh shares.

WeWork India, launched in 2017, is majority-owned by real estate tycoon Jitu Virwani and his son Karan, who own Bengaluru-based developer Embassy Group.

As of September 30, 2024, WeWork India operated 59 centres with a total capacity of 94,440 desks across eight cities. The Indian unit expects the listing to boost brand visibility and provide liquidity for existing shareholders, according to its prospectus.

Once listed, WeWork India will directly compete with peers Smartworks Coworking Spaces SMAW.NS and Awfis Space Solutions AWFI.NS.

($1 = 88.6580 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sonia Cheema and Sherry Jacob-Phillips)

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** Shares of Awfis Space Solutions Ltd AWFI.NS up 7% at 598 rupees

** Stock set for best day in 2025, if gains hold

** AWFI's Q1 profit jumped 3.6x to 99.8 million rupees ($1.1 million), helped by strong demand for its flexible workspace solutions

** Stock rose as much as 11.7% earlier in the session

** About 3 mln shares traded in stock's busiest session in nearly a year, 12.4x the 30-day avg volume

** All three analysts tracking stock rate it "strong buy" on average; median PT is 891 rupees - data compiled by LSEG

** Stock down ~18% YTD

($1 = 87.6187 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, July 30 (Reuters Breakingviews) - WeWork’s latest push for an initial public offering sounds a bit too familiar. The coworking space’s India affiliate is preparing for a Mumbai share sale. It has improved on the business model of its global namesake which commanded a $47 billion valuation before scrapping its planned IPO in 2019. Nonetheless, it looks like another rushed attempt at a stock market listing from the brand.

As a separate entity, WeWork India was unscathed by WeWork Global's entry into bankruptcy proceedings in 2023. It counts the company as a minority investor and pays it a management fee, recently renegotiated down to 2.84% of revenue. Embassy Group, a Bengaluru-based developer, owns 74% of the firm.

The franchisee stands apart in other ways, too. For a start, it is profitable. WeWork Global was racking up billions of dollars of losses ahead of its IPO push. By contrast, WeWork India turned a small net profit in the six months to September 2024.

The franchisee's business looks more disciplined too. Its centres are in top cities like Bengaluru where demand has kept occupancy rates well over 80%, according to property consultancy Knight Frank. Its tenants include JP Morgan JPM.N and Thomson Reuters TRI.TO, the parent of Reuters Breakingviews.

And the company is experimenting with ways to reduce costs: in three of its 59 centres, landlords cover operating and setup costs for a cut of the revenue; another five run on fixed-fee services. The relationship with Embassy Group, also a partner to Blackstone BX.N, makes it easier for WeWork India to access prime office real estate too.

On a multiple of 3.65 times 2026 sales, the same as Peak XV Partners-backed local rival Awfis Space Solutions AWFI.NS, WeWork India’s enterprise might be worth $814 million. Yet that would be nearly double the valuation that was mooted in local media in April last year, and about twice the multiple of London-listed International Workplace Group IWG.L which has over 4,000 workspace locations globally.

WeWork India is also going public in what looks like an increasingly crowded market. The Executive Centre, backed by KKR KKR.N, is preparing to list, too. Smartworks Coworking Spaces SMAW.NS debuted earlier this month. What's more, none of the proceeds from the global brand's potential $400 million offer will go to the company: it's just an opportunity for existing investors to cash out. Given the difficult history of the brand, WeWork India should have delayed its IPO until it proved itself a bit more.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

WeWork India has begun marketing its initial public offering, which is expected to raise as much as 35 billion rupees ($407 million), Bloomberg reported on July 17, citing people familiar with the matter. The coworking space provider aims to launch the deal in August.

The company is owned by Indian real estate firm Embassy Group and 1 Ariel Way Tenant, an affiliate of WeWork Global. The offering will be comprised entirely of existing shares, according to WeWork India's prospectus.

(Editing by Una Galani; Production by Aditya Srivastsav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

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July 17 (Reuters) - Smartworks Coworking Spaces' SMAW.NS shares climbed 14% in their trading debut in Mumbai, valuing the company at 52.96 billion rupees (about $617 million) as investors bet on rising demand for integrated office solutions in India.

The provider of integrated enterprise workspaces opened at 435 rupees, above its issue price of 407.

Smartworks' IPO comes amid strong demand for commercial space in India, following two consecutive years of record office leasing activity and as global companies expand their presence in India.

This has propelled India into becoming Asia-Pacific's top office market, along with Japan and Singapore, according to real estate services provider CBRE.

Smartworks' $67.9 million initial public offering was subscribed 13.45 times over three days, largely by qualified institutional buyers, including foreign investors, domestic banks, insurers and mutual funds.

The firm competes with WeWork India Management WEWO.NS and Awfis Space Solutions AWFI.NS in the domestic market.

($1 = 85.8480 Indian rupees)

(Reporting by Manvi Pant; Editing by Vijay Kishore)

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Feb 19 (Reuters) - Awfis Space Solutions Ltd AWFI.NS:

• TAX AUTHORITY ORDERS PROVISIONAL ATTACHMENT OF AWFIS BANK ACCOUNTS

• NO FINANCIAL IMPACT ON AWFIS DUE TO ORDER

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Feb 11 (Reuters) - Awfis Space Solutions Ltd AWFI.NS:

• DEC-QUARTER CONSOL PROFIT 151.8 MILLION RUPEES

• DEC-QUARTER CONSOL REVENUE FROM OPERATIONS 3.18 BILLION RUPEES

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Nov 11 (Reuters) - Awfis Space Solutions Ltd AWFI.NS:

• SEPT-QUARTER CONSOL PROFIT 386.7 MILLION RUPEES

• SEPT-QUARTER CONSOL REVENUE FROM OPERATIONS 2.92 BILLION RUPEES

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Sept 18 (Reuters) - Awfis Space Solutions Ltd AWFI.NS:

• AWFIS SPACE SOLUTIONS - LAUNCHED NEW CENTRE IN GIFT CITY, GANDHINAGAR

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** Shares of Awfis Space Solutions AWFI.NS jump as much as 7.4% to 824 rupees

** Co, which caters to flexible workspace needs, partnered with Nyati group, a real estate firm, for additional 300,000 sq. ft. of workspace

** Stock set to snap a two-day losing streak, but on track to break a four-week rally

** Including day's move, AWFI has risen ~80% YTD

(Reporting by Yagnoseni Das in Bengaluru)

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Aug 27 (Reuters) - Awfis Space Solutions Ltd AWFI.NS:

• SIGNS MANAGED AGGREGATION DEAL OF 300,000 SQ FT WITH NYATI GROUP

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(Reporting by VijayDattaram Malkar)

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** Shares of Awfis Space Solutions AWFI.NS jump 9.3% to record high of 862 rupees

** Co, which caters to flexible workspace needs, launches two new centres in Bengaluru city

** AWFI plans to add 40,000 seats in FY25; its current seat count is ~112,000

** Stock set for fourth straight weekly gain if trends hold

** Volume of shares traded is 1.4x 30-day avg

** Including day's move, AWFI has more than doubled since listing in end-May

(Reporting by Hritam Mukherjee in Bengaluru)

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** Shares of India's Awfis Space Solutions AWFI.NS rise ~5% to 704 rupees

** AWFI, which caters to flexible workspace needs, posted Q1 consol profit of 27.9 mln rupees (about $332,321) vs loss a yr ago; rev jumped 37%

** Trading vols 2.4x 30-day avg

** YTD stock has gained 67% since listing in end-May

($1 = 83.9550 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru)

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May 15 (Reuters) - Awfis Space Solutions Ltd AWFI.NS:

• REVISES FRESH ISSUE SIZE FOR IPO TO 1.28 BILLION RUPEES FROM 1.60 BILLION RUPEES EARLIER - PROSPECTUS

• OFFER FOR SALE REVISED TO 12.3 MILLION SHARES FROM 10.02 MILLION SHARES EARLIER

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