Smartworks Coworking Spaces Limited is all set to launch its highly anticipated Initial Public Offering (IPO) on July 10, 2025, aiming to raise ₹582.56 crore through a combination of fresh issue and offer for sale.

This IPO marks a significant milestone for the company, a major player in India's managed office space sector that has built a reputation for delivering customised, tech-enabled work environments for large enterprises, MNCs, and growing startups.

This article will help you understand the complete details of the Smartworks Coworking IPO, its business model, pricing, reservation, timeline, and what investors should consider before subscribing.

Smartworks Coworking IPO Details

The Smartworks Coworking IPO is structured as a book-building issue with a total size of ₹582.56 crore.

Key components include:

• Fresh Issue: 1.09 crore shares worth ₹445 crore.

• Offer for Sale (OFS): 0.34 crore shares worth ₹137.56 crore.

Price Band: ₹387–₹407 per share.

Lot Size: 36 shares per lot.

• Minimum retail investment: ₹14,652 (1 lot at upper price band).

• sNII minimum: 14 lots (504 shares), approx. ₹2,05,128.

• bNII minimum: 69 lots (2,484 shares), approx. ₹10,10,988.

Employee Discount: ₹37 per share.
Employees can subscribe at ₹350–₹370 per share.

Listing Exchanges: BSE and NSE.

Subscription Window and Timeline

IPO Open Date: Thursday, July 10, 2025
IPO Close Date: Monday, July 14, 2025
Allotment Date (Tentative): Tuesday, July 15, 2025
Refund Initiation: Wednesday, July 16, 2025
Credit of Shares to Demat: Wednesday, July 16, 2025
Tentative Listing Date: Thursday, July 17, 2025

Cut-off time for UPI Mandate Confirmation: 5 PM on July 14, 2025.

This tight schedule ensures that investors will know their allotment status just one day after the IPO closes.

Smartworks Coworking IPO Reservation Details

The IPO has clear category-wise allocations:

• QIB: 71,10,632 shares.

• NII: 21,33,189 shares (14.89%).

• Retail Investors (RII): 49,77,442 shares (34.75%).

• Employees: 1,01,351 shares (0.71%) at discounted price.

Retail Category Limits:

• Up to ₹2 lakh per application.

• Bidding at cut-off price allowed.

sNII Category:

• ₹2 lakh to ₹10 lakh.

• No cut-off bidding.

bNII Category:

• Above ₹10 lakh.

• No cut-off bidding.

This structured reservation ensures fair participation across investor classes.

Anchor Investors

The IPO did not raise any funds from anchor investors.

• Anchor Investor Bid Date: July 9, 2025.

• Amount Raised: ₹0.00 crore.

• Shares Offered: 0.

While this may seem unusual, it suggests the company is relying more on open-market subscription demand.

About Smartworks Coworking Spaces Limited

Founded in 2015, Smartworks Coworking Spaces Limited is one of India’s largest providers of customised, fully serviced, tech-enabled office spaces designed for mid-to-large enterprises.

Business Highlights:

• Serves mid-to-large enterprises, MNCs, and startups.

• Offers modern campuses with amenities like cafeterias, gyms, crèches, medical centres.

• As of March 31, 2025:

  • 728 clients.

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

  • Operates India’s largest leased centres, like Vaishnavi Tech Park in Bengaluru (0.7 million sq ft).

Business Model:

• Works with non-institutional landlords to transform properties into Smartworks campuses.

• Offers rental assurance and long-term leases to landlords.

• Provides tenants with cost-efficient, tech-enabled workspaces.

• Enhances employee well-being and productivity with amenities.

Service Partners: Collaborates with brands like Chaipoint and ClearTax to offer in-house services and add value for tenants.

Competitive Strengths

• Market leadership with scale and strong growth.

• Expertise in transforming large properties into Smartworks-branded campuses.

• Focus on acquiring enterprise clients with large seat requirements.

• Cost efficiencies and technology-backed execution.

• Financial discipline and strategic capital allocation.

• Risk-mitigation strategies ensuring a stable business model.

Smartworks positions itself as a partner of choice for large Indian and multinational corporates seeking flexible, premium office spaces.

Financial Performance

Revenue Growth:

• FY25: ₹1,409.67 crore (up 27% from ₹1,113.11 crore in FY24).

Profit After Tax (PAT):

• FY25: ₹-63.18 crore (down from ₹-49.96 crore in FY24).

Assets:

• FY25: ₹4,650.85 crore.

EBITDA:

• FY25: ₹857.26 crore (up from ₹659.67 crore).

Key Metrics (FY25):

• ROCE: 42.30%.

• Debt/Equity: 2.90.

• RoNW: -58.76%.

• EBITDA Margin: 62.39%.

• Price to Book Value: 38.58.

Observations:

• Strong revenue and EBITDA growth.

• High debt levels and losses reflect the capital-intensive nature of the business.

• High RoCE suggests efficient capital use in operations.

Shareholding Pattern

• Pre-issue Holding: 65.19%.

• Post-issue Holding: 58.25%.

Promoters include:

• Neetish Sarda, Harsh Binani, Saumya Binani, NS Niketan LLP, SNS Infrareality LLP, Aryadeep Realstates Private Limited.

The equity dilution is moderate, ensuring promoters retain majority control while funding expansion.

Use of IPO Proceeds

Fresh Issue Proceeds (₹445 crore) will fund:

• Working capital requirements.

• General corporate purposes.

• Potential property development or leasehold improvements.

Offer for Sale (₹137.56 crore) provides partial exits to existing shareholders without impacting the company’s cash flow.

Why Investors Are Watching This IPO

Sector Opportunity

• India’s commercial real estate is shifting toward flexible, managed office spaces.

• Post-pandemic, companies want cost-efficient, scalable, employee-friendly offices.

• Smartworks' offering of premium, customisable spaces is well aligned with this demand.

Company Strengths

• Scale advantage with presence in key Indian cities.

• Deep relationships with landlords and large tenants.

• Ability to transform large properties and deliver consistent experiences.

Financial Metrics

• While loss-making, Smartworks shows strong operational metrics like EBITDA margins and ROCE.

• Focus on reducing debt over time could improve profitability.

Potential Risks

• High Debt Levels: Debt/equity ratio of 2.90 is elevated, requiring disciplined management.

• Loss-making Profile: While revenue is growing, losses are widening.

• Market Competition: Competes with WeWork, Awfis, and other players.

• Economic Sensitivity: Demand can be cyclical, linked to broader corporate capex.

Investors must balance these risks against the strong sector opportunity and Smartworks’ execution capabilities.

Expert Views

Analysts see the IPO as:

• Fairly priced within the ₹387–₹407 range considering sector growth and company scale.

• High-risk, high-reward bet due to debt and profitability challenges.

• Attractive for long-term investors who believe in India’s coworking growth story.

Retail investors should consider:

• Category reservation advantages.

• Employee discount if eligible.

• Lot size affordability.

• Careful study of financials and competitive landscape.

Conclusion

Smartworks Coworking IPO is among the most significant SME-flavoured listings in the flexible workspace sector.

It offers:

• ₹582.56 crore issue split into fresh capital and OFS.

• Reasonable pricing at ₹387–₹407 with employee discount.

• Strong business fundamentals with scale and brand.

• Promoter commitment and clear use of funds.

While the high debt and loss-making track record pose challenges, the IPO gives investors a chance to participate in India’s evolving office market, where demand for flexible, managed workspaces continues to grow.

Retail investors should evaluate pricing, reservation benefits, and their own risk tolerance carefully before subscribing.

This IPO is not just a bet on Smartworks, but on the future of how India works.

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.

The Upcoming IPOs in this week and coming weeks are NSDL, Spunweb Nonwoven, Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control, Glen Industries,  Anthem Biosciences.

The Current active IPO are Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

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