Awfis Space Solutions, a network of co-working spaces, has reportedly offered an exit to its early backers, DOIT Urban and RAB India Enterprises, to the tune of Rs 247 crore. As per Entrackr, their stakes will now likely be acquired by new investors as Awfis plans to raise more funds from another round.
According to the report, the Delhi-based firm, which opened its first co-working space in 2015, has raised around $90 million in funding from Sequoia India, Innoven Capital, Chrys Capital, Link Investments and the Yes Bank group. According to a report published by Business Standard in May, Awfis seeks to raise Rs 500-600 crore via IPO by next year to meet their growth and expansion targets. This is also expected to pay for the exit of existing shareholders.
According to regulatory filings available with the Registrar of Companies (RoC), Awfis has passed a special resolution to bring down its 1,50,91,892 equity and 22,36,565 preference shares in order to provide a cash exit to its early backers, Entrackr reports. As such, the stakes owned by DOIT Urban and RAB India will be valued at Rs 144.27 per share. The National Company Law Tribunal (NCLT) is yet to give its nod to this transaction though.
RAB Enterprises and DOIT Urban are associated with Rakhee Rana Kapoor and Radha Rana Kapoor respectively, daughters of Rana Kapoor, the co-founder and former managing director of Yes Bank.