Awfis, a Delhi-based co-working space company, is the largest provider of office space to corporate companies and organizations in India. After launching its IPO from May 22-27, the stock listed at ₹432.25 per share, a premium of 12.86%. As of July 18, the stock has reached an all-time high of ₹703, forming an upper circuit.

Several reasons are responsible for the unexpected surge in the stock:

1. Awfis is the leading player in the co-working space segment, with high demand for office space in recent years, making it a strong contender.

2. The company has robust financials, with no debt, a revenue increase from ₹2570 million in March 2022 to ₹5452.82 million in March 2023, and a 18.5% increase in Profit After Tax (PAT) from 2022 to 2023. Its Price-to-Book (P/B) ratio is 10.29, slightly higher than its peers.

3. Awfis boasts a smart management team, including Founder and CEO Amit Ramani, Ravi Dugar, and Sumit Lakhani.

4. The low promoters’ holding has led to high trading volumes, increased demand, and a sudden surge in shares.”