Dev Accelerator Limited, a prominent flexspace operator, has reported a compliant utilization of its Initial Public Offering (IPO) proceeds for the quarter ended September 30. The company's adherence to its stated objectives has been confirmed by the monitoring agency, Infomerics Valuation and Rating Limited.

Fund Utilization Breakdown

According to the report, Dev Accelerator Limited has utilized Rs. 55.55 crore out of the total IPO proceeds of Rs. 143.35 crore during the quarter. The funds were deployed across three main areas:

Remaining Funds

The company has maintained Rs. 72.92 crore in various investment instruments, demonstrating prudent financial management of the unutilized funds. These investments are distributed as follows:

Specific Fund Allocations

The report provides insights into some specific allocations under the general corporate purposes category:

• Rs. 10.00 crore was used to repay an inter-corporate loan from Infibeam Projects Management Private Limited.
• Rs. 0.20 crore was transferred to the subsidiary company, Saasjoy Solutions Private Limited, as an unsecured loan.
• Rs. 4.00 crore was transferred to an ICICI Bank current account, with Rs. 4.10 crore subsequently paid to Pantomath Capital Advisors.

Monitoring Agency's Observations

Infomerics Valuation and Rating Limited, serving as the monitoring agency, has not reported any deviations from the stated objectives of the IPO. The agency's report confirms that all government and statutory approvals related to the IPO objectives have been obtained.

Company's Perspective

While the report does not include direct quotes from Dev Accelerator Limited's management, the detailed breakdown of fund utilization suggests a strategic approach to deploying the IPO proceeds. The company's focus on capital expenditure for new centers aligns with its position as a flexspace operator, indicating potential expansion plans.

The prudent management of unutilized funds through various investment instruments demonstrates the company's commitment to maintaining financial stability while preparing for future growth opportunities.

Dev Accelerator Limited (NSE: DEVX, BSE: 544513), a leading provider of flexible workspace solutions, has reported a robust financial performance for the second quarter. The company's focus on enterprise clients and strategic expansion in Tier-2 cities has yielded significant growth in revenue and operational metrics.

Financial Highlights

Dev Accelerator's revenue from operations for Q2 stood at ₹51.84 crore, marking a substantial 50.4% increase compared to ₹34.47 crore in the same quarter of the previous year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter reached ₹26.43 crore, up 45.3% year-on-year, with an EBITDA margin of 50.9%.

Operational Performance

The company has expanded its operational footprint to 28 centers across 12 cities, covering 0.89 lakh sq. ft. Key operational metrics include:

• Overall occupancy rate: 88%
• Committed occupancy rate: 90%
• Enterprise clients now constitute 65% of rental revenue

Strategic Expansion and Client Base

Dev Accelerator's Managing Director, Umesh Uttamchandani, highlighted the company's strategic focus: "Our portfolio today spans 28 centres across 12 cities with ~13,604 seats and ~8.6 lakh sq. ft. under management, operating at high ~88% occupancy - testament to the resilience of our model and the depth of enterprise demand we serve."

The company reports a strong presence in Tier-2 markets, including Ahmedabad, Gandhinagar, Jaipur, Udaipur, Indore, Vadodara, and Rajkot, while also deepening its presence in Tier-1 hubs.

Future Outlook

Dev Accelerator has a robust pipeline for future growth:

• 0.44 lakh sq. ft. under fit-out
• Plans to set up 8 new centers covering approximately 799,179 sq. ft. under the straight lease model, funded from IPO proceeds
• Expansion focused on Tier-II cities

IPO Utilization

The company recently completed its Initial Public Offering (IPO) and has utilized the proceeds as follows:

Management Commentary

Umesh Uttamchandani expressed confidence in the company's growth trajectory: "Near term visibility is strong. With 4.4 lakh sq. ft., 5,990 Seats under fit-out and a strong demand pipeline, we remain confident of delivering sustained growth and creating long-term value for our shareholders."

Dev Accelerator's Q2 results demonstrate the company's strong market position in the flexible workspace sector, particularly in Tier-2 cities. The significant revenue growth, high occupancy rates, and strategic expansion plans indicate a positive outlook for the company in the evolving Indian office space market.