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

Smartworks IPO Lot Size & Investment

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

Reservation Details

IPO Objectives

Financial Highlights

✅ 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

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):

• Visit registrar (MUFG Intime/Link Intime) website.

• Select "Smartworks Coworking Spaces IPO".

• Enter PAN/Application/DP ID to see status.

  Disclaimer:

  This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

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