One of the largest managed office space provider in Tier 2 cities, Dev Accelerator Limited (DevX) files DRHP with SEBI to raise funds through IPO

Dev Accelerator Limited (DevX)has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to raise funds through IPO.

Dev Accelerator Ltd (DevX) is promoted by Umesh Uttamchandani, Parth Shah, Rushit Shah & Dev Information Technology Limited. DevX is one of the largest managed space operator in Tier 2 markets in terms of operational flex stock, with centres across 6 cities. (Source: JLL Report).

Specializing in complete Built to Suit Managed Office Solutions for enterprises, the company has established a presence across 15 submarkets in India across Tier 1 markets of Delhi NCR, Hyderabad, Mumbai, Pune and Tier 2 markets of Ahmedabad (including Gandhinagar), Indore, Jaipur, Udaipur, and Vadodara (Source: JLL Report).

DevX provides integrated services from sourcing office spaces, customizing designs, developing spaces, and providing technology solutions to providing complete asset management. As on August 31, 2024, the company has serviced over 230 clients and have 25 Centers across 11 cities in India.

The company’s clientele comprises of large corporates, MNCs and SMEs, offering variety of flexible office space solutions such as managed office spaces and coworking spaces as well as design and execution services through the Subsidiary, Neddle and Thread Designs LLP.

The Company has experienced rapid growth in their business. Between March 31, 2022 to March 31, 2024, company’s Operational Centers, Operational seats and Operational Super Built-Up Area grew at a CAGR of 66.67%, 39.89% and 53.14%, respectively. Revenue from operations grew at a CAGR of 87.08% from ₹308.83 million (30.8 cr) in Fiscal 2022 to 1,080.87 million (108.08 cr) in Fiscal 2024.

As a part of their growth strategy, they plan to enhance their presence in existing markets in India where they already operate as well as establish presence in new markets. This strategic initiative aims to strengthen their footprint within these regions, and further increase their operational capacity.

DevX will use IPO proceeds to fuel its capital expenditure for fit-outs and security deposits for new centres. The proceeds will also be utilised for repayment and/or pre-payment of certain borrowings including redemption of non-convertible debentures.

Pantomath Capital Advisors Private Limited is the sole Book Running Lead Manager to the Issue.