Dev Accelerator IPO Saw A Huge Demand Among Investors: Should You Apply?

Dev Accelerator Limited, which focuses on the fast-growing flexible workspace segment in Tier-2 cities, is seeing tremendous demand for its IPO. Priced between ₹56–61 per share, the issue closes on September 12 with a lot size of 235 shares. After a strong start on Day 1, Day 2 witnessed a massive jump in subscription at 16.11 times overall. Retail investors have oversubscribed an eye-popping 59.48 times, Non-Institutional Buyers chipped in with 15.36 times, while QIBs maintained a more measured 2.40 times. Interestingly, the GMP has remained stable with only a slight uptick, holding at ₹9 before the opening, ₹9 on Day 1, and touching ₹10 on Day 2. This points to sustained interest but not runaway speculation, implying possible modest listing gains around 15–16% if momentum sustains. The mix clearly shows high retail enthusiasm balanced by cautious but improving institutional demand, keeping the IPO in the spotlight for investors tracking growth-led but leveraged plays.

IPO Overview

• IPO Date: September 10 to September 12, 2025
• Total Issue Size: ₹143.35 crore
• Price Band: ₹56 to ₹61 per share
• Lot Size: 235 Shares
• Tentative Allotment Date: September 15, 2025
• Listing Date: September 17, 2025 (Tentative)
• Subscription Status: Dev Accelerator saw the IPO subscriptions of 16.11 times as on day 2. 
• GMP: The GMP for Dev Accelerator IPO is ₹10, reflecting a 16.39% gain over the issue price, according to Chittorgarh.com (as of September 11).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 2 of the IPO

On Day 2, Dev Accelerator IPO recorded a massive 16.11 times overall subscription, with extraordinary retail interest at 59.48x and NIIs following at 15.36x. QIBs, though cautious earlier, improved to a healthier 2.40x. GMP showed only a slight move from ₹9 to ₹10, signaling steady interest and indicating an estimated 15–16% listing premium if positive sentiment sustains.

Highlight of Day 1 of the IPO

On the first day, Dev Accelerator IPO drew strong retail demand with an overall 5.34x subscription. Retail investors led with a striking 19.60 times their quota, while non-institutional buyers came in at 4.46x, and QIBs stood at 1.16x. The GMP held steady at ₹9, hinting at an estimated 14–15% listing premium if sentiment sustains. The steady GMP suggests consistent buzz but without sharp speculative spikes, reflecting balanced investor enthusiasm.

How Does Dev Accelerator Make Money?

Dev Accelerator is about workspaces on demand. It rents office spaces, custom-builds them, and also runs facilities like housekeeping, IT services, and payroll support. Its like as a hybrid between a landlord, an office interior designer, and a facilities manager, bundled into one.

So if a startup, freelancer, or a large multinational needs an office without burning cash on furniture, interiors, or maintenance, Dev Accelerator sets it all up. The clients just plug and play. With 28 centers across 11 cities and over 14,000 work seats, Dev Accelerator has evolved into a prominent flex-space name, particularly in Tier 2 markets like Ahmedabad and Jaipur, where competition is thinner.

Objectives of the IPO

Here’s where the ₹143.35 crore from the IPO is headed:

• ₹73.12 crore: To set up 4 new centers in Ahmedabad, Chennai, and Pune.
• ₹35 crore: To repay existing debt. Total debt stands at ₹127.6 crore.
• Up to 25% of proceeds: For day-to-day needs, general corporate purposes, and strategic growth spends.

Strengths:

• Over half the revenue (58.7% in FY25) comes from managed office solutions, with long 5–9 year leases and lock-in periods of 3–5 years. This makes income relatively predictable.
• Occupancy rate stood at 87.6% in FY25, one of the highest in the industry, signaling strong demand.
• Revenue surged from ₹70 crore in FY23 to ₹159 crore in FY25, a CAGR of ~51%.
• EBITDA margin of 50.6% in FY25, second highest among peers, shows that day-to-day operations are being run well.
• Largest managed space operator in Tier 2 cities, where growth in flexible demand is currently faster than metros.

Risks:

• Despite growth, Dev Accelerator remains the smallest in revenue (₹159 crore) among listed peers.
• Profits in FY25 were minimal at ₹2 crore, just a 1% net margin, which doesn’t leave much cushion.
• Debt-to-equity ratio improved to 2.39x in FY25 but remains on the higher side.
• Nearly 30% of FY25 revenue came from Ahmedabad alone, making it heavily tied to that market.
• 75% of its centers run on straight leases, meaning Dev bears heavy fit-out costs upfront, pressuring cash flows.
• A loan worth ₹22.38 crore to an associate equaled more than 14% of its revenue, not a good signal for governance-conscious investors.

For detailed information, visit Dev Accelerator’s IPO page.

Peer Comparison

Dev Accelerator competes with the likes of Awfis, Smartworks, and Indiqube in the Indian listed peer space.

• Profitability: Dev made ₹1.8 crore in FY25 (1% margin). Awfis posted ₹67.9 crore (5.4% margin) while Smartworks (-₹63 crore) and Indiqube (-₹140 crore) remained loss-making.
• Occupancy Rates: Dev leads the lot with 87.6%. Awfis (83%), Smartworks (83.1%), and Indiqube (85.1%) trail.
• Efficiency: EBITDA margin of 50.6%, only Indiqube (58.2%) and Smartworks (62.4%) are higher, but both are loss-making at the net level.
• Scale: Dev has 13,759 capacity seats versus Awfis (134,121), Smartworks (183,613), and Indiqube (139,183). So, it’s clearly the smallest-scale player.

Source: RHP

IPO Valuation

The valuation metrics show a mixed bag. P/E ratio is extremely high, at 225.9x pre-issue and 315.5x post-issue, against Awfis’s 60.9x. However, in terms of EV/EBITDA, it is at 7.55x, which looks cheaper relative to Awfis (10.7x), Smartworks (10.8x), and Indiqube (13.5x). It means Dev’s stock is priced lower for every ₹1 it earns before interest, tax, and depreciation. In other words, investors are paying less for Dev’s earnings compared to peers like Awfis, Smartworks, and Indiqube, making Dev look cheaper.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind the Company

The promoters are relatively young in terms of sector experience, but their early bet on Tier-2 cities has worked in their favor. Chairman Parth Shah has over 7 years’ exposure in HR, technology, interiors, and design sales, areas that are critical when scaling customer-focused offices. Umesh Satishkumar Uttamchandani, the MD, also carries ~7 years in the segment but plays a broader role from finance and investor relations to strategic partnerships. He has been formally recognized by ecosystem awards, signaling his visibility in the flex-space industry. Rushit Shah, another whole-time director, adds legal and IT flavor to the leadership, ensuring operational compliance and execution on the ground.

Supporting them are experienced CFOs, Parin Shah (14 years, finance depth) and Parthiv Panchal (7 years). The larger leadership pool includes experts across procurement, facility management, marketing, and compliance. While the promoter group lacks the decades of legacy often seen in larger corporates, their agility in Tier-2 growth markets has created a niche positioning.

Industry Outlook

India’s flexible workspace sector is at a critical growth inflection. Flex stock in the country is expected to double to ~129 million sq. ft. by 2028, with penetration rising to 8–9% of total office stock. Demand from global capability centres (GCCs) and the shift of enterprises towards Tier 2 locations due to costs and talent availability are strong tailwinds. Managed office solutions ,  where clients delegate everything from interiors to daily facilities, are driving this momentum, growing at 50%+ CAGR. But the same industry is highly cyclical; downturns, cost overruns, or aggressive competition can quickly erode margins.

Analyst View

Dev Accelerator’s IPO has turned into a classic retail-backed story. By Day 2, the issue was subscribed 16.11 times, with retail investors driving frenzy at nearly 60x, a clear vote of confidence from small investors. Non-institutional participation was also very strong at over 15x, while QIB bids rose to 2.40x, showing institutions are warming up but still measured compared to retail. On the GMP front, movement is minimal—slipping from flat stability to a minor rise at ₹10, indicating consistent interest but no euphoric momentum. This suggests a fair chance of listing gains in the range of 15–16%, provided sentiment holds. However, the fundamentals remain a balancing act. The company has strong growth drivers in flexible workspace demand, predictable lease revenues, and potential to scale, but thin margins and high leverage will keep profitability under pressure. Valuations, seen as steep on earnings but reasonable on EV/EBITDA versus peers, reflect this mixed story. Overall, the IPO showcases great demand, particularly retail-driven, with stable GMP suggesting optimism tempered by cautious institutional participation.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Dev Accelerator's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.