Smartworks Coworking IPO opens July 10 with ₹387–407 band for BSE, NSE listing

NOOR MOHMMED

    09/Jul/2025

  • Smartworks Coworking Spaces IPO runs July 10–14 with ₹582.56 crore issue at ₹387–407 price band and lists on BSE, NSE on July 17.

  • The IPO comprises fresh issue of ₹445 crore and offer for sale of ₹137.56 crore with lot size of 36 shares, min retail investment ~₹14,652.

  • Proceeds to repay ₹114 crore debt and ₹225.84 crore for fit-outs and security deposits at new centres across India.

Smartworks Coworking Spaces Limited, India’s largest managed office space provider by seats, is launching its IPO from July 10–14, 2025 in the price band ₹387–₹407 per share.

This ₹582.56 crore bookbuilt IPO combines a fresh issue of 1.09 crore shares (₹445 crore) and an Offer for Sale of 0.34 crore shares (₹137.56 crore).

The IPO will be listed on BSE and NSE with a tentative listing date of July 17, 2025.


Company Overview

Business Model: Tech-enabled, fully serviced, customizable managed workspaces.
✅ Focus on large Indian corporates, MNCs, and start-ups.
✅ Presence in India’s top office clusters with modern campuses featuring cafeterias, gyms, crèches, and medical centers.

✅ As of March 31, 2025:

  • 728 clients

  • 169,541 seats (12,044 yet to be occupied)

  • Among India’s 5 largest leased centers (e.g. Vaishnavi Tech Park, Bengaluru at 0.7 million sq ft)

Promoters: Neetish Sarda, Harsh Binani, Saumya Binani, NS Niketan LLP, SNS Infrareality LLP, Aryadeep Realstates Pvt Ltd.

Employees: 794 permanent staff as of March 31, 2025.


Competitive Strengths

⭐ Market leadership with scale and branding.
⭐ Ability to transform entire properties into Smartworks campuses.
⭐ Strong B2B client base of large enterprises.
⭐ Efficient cost and process management.
⭐ Capital-efficient strategy via long-term leasing and fit-out financing.
⭐ Partnership with service providers for amenities.


IPO Details

Item Detail
IPO Type Bookbuilt Issue
Total Issue Size ₹582.56 Crores
Fresh Issue ₹445.00 Crores (1.09 crore shares)
Offer for Sale ₹137.56 Crores (0.34 crore shares)
Price Band ₹387–₹407 per share
Face Value ₹10 per share
Lot Size 36 shares
Minimum Retail Bid ₹13,932 (at lower band)
Employee Discount ₹37 per share
Issue Opens July 10, 2025
Issue Closes July 14, 2025
Allotment Date July 15, 2025 (Tuesday)
Listing Date July 17, 2025 (Thursday)
Exchanges BSE, NSE
Registrar MUFG Intime India (Link Intime)
Lead Manager JM Financial Limited


Smartworks IPO Lot Size & Investment

Category Lots Shares Investment Approx
Retail 1–13 36–468 ₹14,652 – ₹1,90,476
sNII 14–68 504–2448 ₹2,05,128 – ₹9,96,336
bNII 69+ 2484+ ₹10,10,988+

✅ Employee reservation: 1,01,351 shares at ₹37 discount.


Reservation Details

Investor Category Shares Offered % of Total
QIB 71,10,632 ~50%
NII 21,33,189 14.89%
Retail 49,77,442 34.75%
Employee 1,01,351 0.71%


IPO Objectives

Purpose Amount (₹ Crore)
Repayment / prepayment of borrowings 114.00
Capital expenditure for new center fit-outs and security deposits 225.84
General corporate purposes Balance


Financial Highlights

Period Ended Revenue (₹ Cr) PAT (₹ Cr) EBITDA (₹ Cr) Net Worth (₹ Cr) Debt (₹ Cr)
FY25 1,409.67 -63.18 857.26 107.51 397.77
FY24 1,113.11 -49.96 659.67 50.01 427.35
FY23 744.07 -101.05 424.00 31.47 515.39

✅ Revenue growth: ~27% (FY24 to FY25)
✅ EBITDA growth: ~30% (FY24 to FY25)
❗ Negative PAT due to high interest, depreciation.


Key Performance Indicators (as of March 31, 2025)

  • ROCE: 42.30%

  • Debt/Equity: 2.90

  • RoNW: -58.76%

  • EBITDA Margin: 62.39%

  • Price/Book Value: 38.58

  • Pre-issue EPS: -6.12

  • Post-issue EPS: -5.54


Promoter Shareholding

Stage % Holding
Pre-IPO 65.19%
Post-IPO 58.25%


SWOT Summary

Strengths

  • Leading managed workspace brand in India.

  • Strong B2B customer base with long-term contracts.

  • Capital-efficient leasing model.

  • High EBITDA margins.

⚠️ Weaknesses

  • Negative net profits.

  • High debt and interest burden.

  • Highly competitive coworking industry.

Opportunities

  • Rising demand for flexible workspaces.

  • Expanding to new Indian cities and enterprise clients.

⚠️ Threats

  • Economic downturns affecting occupancy.

  • Real estate price volatility.


Analyst View

Verdict: “May Apply” for well-informed, risk-tolerant investors.

✔️ Dilip Davda’s Review Summary:

Smartworks is India’s leading managed workspace platform with scale and long-term MNC contracts. The issue is loss-making but cash EBITDA positive. Appears aggressively priced, but well-informed/cash surplus investors may consider moderate allocation for medium-to-long term.


Final Recommendation

Short-term listing view: Cautious (negative PAT and rich valuation).
Medium-to-long term view: Positive for investors betting on India's office demand and Smartworks' scale.
Suggested strategy: Apply only if risk appetite is high and you believe in the flexible workspace growth story.


How to Apply and Check Allotment

How to Apply

  • Via ASBA in net banking or UPI mandate through broker apps.

Allotment Check (from July 15):

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