Dev Accelerator, a provider of flexible office spaces, has submitted a draft document to Sebi for launching its initial public offering (IPO) with the aim of raising approximately Rs 1.25 billion. The company is promoted by the listed entity Dev Information Technology.

The IPO consists entirely of a fresh issue of 20.47 million equity shares, each with a face value of Rs 2, and it intends to be listed on both the NSE and BSE. DevX plans to allocate Rs 680.95 million for fit-outs in new centers and for security deposits.

According to the draft red herring prospectus (DRHP) submitted to the markets regulator Sebi, Rs 300 million will be directed towards the repayment and/or prepayment of certain borrowings, either in full or in part.

The remaining funds are earmarked for general corporate purposes, which include strategic initiatives, strengthening marketing capabilities, brand-building exercises, and payment of lease liabilities, among other objectives. This capital infusion is expected to facilitate DevX's expansion into major cities such as Mumbai, Gurugram, Noida, Pune, Chennai, GIFT City, Ahmedabad, Vadodara, Rajkot, Surat, Goa, and Jaipur.

As of August 31, 2024, DevX operated 25 centres across more than 10 cities, including Ahmedabad, Vadodara, Hyderabad, Delhi, and Udaipur.

The collaboration between Dev Information Technology's expertise in digital transformation and DevX's flexible workspace solutions is expected to create a unique synergy, providing integrated solutions for enterprises aiming to improve operational efficiency.

Regarding the IPO, Pranav Pandya, the Founder and Chairman of Dev Information Technology, stated that this significant milestone highlights their commitment to the dynamic growth of the flexible workspace sector in India. He added that the funds raised would play a crucial role in accelerating DevX's expansion plans, allowing the company to enter new markets, enhance its infrastructure, and invest in technology that boosts efficiency.