The Smartworks Coworking Spaces IPO opened on July 10, 2025, and will remain open for bidding until July 14, 2025. The company aims to raise between ₹576 crore and ₹583 crore through a combination of fresh issue of shares and an offer for sale.

Subscription Status:

By 10:09 AM on the first day of bidding, the IPO had been booked 0.03 times. The retail segment was subscribed 0.03 times, and the NII (Non-Institutional Investors) segment was subscribed 0.05 times.

Grey Market Premium (GMP):

According to market observers, the company's shares are trading at a premium of ₹29 in the grey market today. Another source indicates a GMP of ₹31 over the upper price band, with shares trading at ₹439 per share in the grey market. It's important to note that the Grey Market Premium (GMP) is an unofficial indicator of market sentiment and is not regulated by stock exchanges or SEBI.

Price Band and Lot Size:

The IPO price band is set at ₹387 to ₹407 per equity share. Investors can bid in lots, with one lot comprising 36 company shares. The minimum investment required for a retail investor is ₹14,652 for one lot of 36 shares.

IPO Details:

The IPO consists of a fresh issue of shares worth ₹445 crore and an offer for sale (OFS) of 33.79 lakh equity shares. The company intends to utilize the net fresh issue proceeds to repay debt and for capital expenditure for fit-outs in new centers and security deposits. The remaining funds will be used for general corporate purposes.

Allotment and Listing:

The most likely date for share allocation is July 15, 2025. The public issue is proposed for listing on the BSE and the NSE, with the most likely listing date being July 17, 2025.

Company Overview:

Smartworks Coworking Spaces Ltd. was incorporated in 2015 and is India's largest managed campus operator by leased area. As of March 31, 2025, it offered over 8.99 million sq ft across 50 centers in 15 Indian cities. The company focuses on mid-to-large enterprises, offering value-centric pricing and superior office experience. Their client base includes Indian corporates, MNCs operating in India, and startups. Key clients include L&T Technology Services, Google IT Services India Pvt Ltd, Philips Global Business Services LLP, and Bridgestone India Pvt Ltd.

Financial Performance:

Smartworks has shown rapid growth in financials, with revenue from operations rising from ₹711.39 crore in FY23 to ₹1,374.05 crore in FY25. EBITDA more than doubled to ₹857.26 crore in the same period. However, the company remains loss-making, with a net loss of ₹63.17 crore in FY25, although margins have improved. As of March 2025, Smartworks had an occupancy rate of 83.1% across operational centers and a client base of 738 enterprises, supported by a seat capacity of over 2 lakh.

Strengths:

• Ability to lease and develop large, amenity-rich campuses.
• Focus on high-ticket enterprise clients and growing mid-to-large businesses.
• Strong execution driven by cost efficiency, processes, and tech infrastructure.
• Capital efficiency through sound financial and strategic execution.
• Largest managed campus operator as of FY24, with a lease-signed portfolio covering 8 million square feet.

Risks:

• High rental revenue concentration in key metro markets.
• Lease renewals and terms subject to landlord discretion.
• Client acquisition challenges may impact rental obligations.
• Pending ongoing legal proceedings can impact business operations.
• The company does not own its centers, and any title defects or legal non-compliance by landlords may affect operations and financials.
• The company has reported net losses per share for the past three fiscal years.
• Highly leveraged balance sheet with a high debt-to-equity ratio.

Should You Subscribe?

As per the financials, IPO investors should consider applying for the long term. The company is set to benefit from the flexible office space industry gaining momentum as hybrid work gains more adoption. However, the competitive nature of the industry and the company's loss-making status remain risks for investors. Investors should conduct their own research and consult with certified experts before making any investment decisions.