Smartworks Coworking Spaces ₹582.56 Crore IPO Opens at ₹407 Without Grey Market Premium

Smartworks Coworking Spaces Limited, one of India’s leading managed office solutions providers, has launched its much-awaited ₹582.56 crore Book Built IPO on the BSE and NSE.

Despite its strong revenue growth and market positioning, the IPO is facing a no-premium (₹0) Grey Market Premium (GMP), and early subscription figures are subdued, raising questions about investor sentiment.

Smartworks IPO: Issue Details at a Glance

• Issue Size: ₹582.56 Crores

  • Fresh Issue: ₹445.00 Crores (10.93 lakh shares)

  • Offer for Sale (OFS): ₹137.55 Crores (33.79 lakh shares)

• Price Band: ₹387 – ₹407 per share

• Market Cap at ₹407: ₹4,644.81 Crores

• Lot Size: 36 shares

• Retail Minimum Investment: ₹14,652 (1 lot)

• HNIs Minimum Investment: 14 lots (504 shares) = ₹2,05,128

Subscription Period:

• Opens: 10 July 2025

• Closes: 14 July 2025

• Allotment Date: 15 July 2025

• Listing Date: 17 July 2025

Lead Managers: JM Financial, BOB Capital Markets, IIFL Capital, Kotak Mahindra Capital
Registrar: MUFG Intime India (formerly Link Intime India)

Grey Market Premium (GMP): ₹0 Indicates Flat Sentiment

As of 09 July 2025 (last update), Smartworks Coworking Spaces IPO GMP is ₹0, implying:

• No premium over issue price.

• Expected listing price = ₹407, exactly at upper band.

• Suggests cautious investor mood and lack of speculative interest.

Why GMP Matters (but is Not Definitive):

• Grey Market Premium reflects informal, unregulated trades before listing.

• High GMP often indicates oversubscription hopes; ₹0 signals tepid demand.

• It is an unregulated, speculative indicator—not a guarantee.

Live Subscription Status

As of 11:00 AM on 10 July 2025, first day of subscription:

• Overall Subscription: 0.04 times (i.e., very low).

• Indicates that investors are wary, perhaps due to losses in past financials.

Investors can check live status on the BSE/NSE websites throughout the bidding window.

Anchor Investor Support

Despite a cold retail response on Day 1, Smartworks secured ₹173.64 Crores from Anchor Investors at ₹407 per share.

• Shares allocated: 42,66,378

• Anchor book closed ahead of public offering, showing institutional backing.

• However, anchor interest alone may not offset broader market caution.

Use of IPO Proceeds

Smartworks aims to use net proceeds for:

1. ₹114 crore: Repayment/prepayment/redemption of certain borrowings.

2. ₹225.84 crore: Capital expenditure for fit-outs and security deposits at new centres.

3. General corporate purposes.

This reflects a capex-heavy, debt-reduction strategy as it scales to new centres.

Business Overview

Smartworks Coworking Spaces offers:

• Managed workspace solutions for enterprises.

• Fully serviced, aesthetic, tech-enabled offices.

• Aspirational amenities for employees.

Its focus is mid-to-large Indian corporates, MNCs, and startups, with an emphasis on:

• Customised fit-outs

• Value-based pricing

• Enhanced services vs traditional leases

Promoter Background

• Neetish Sarda: ~9 years in flexible workspaces.

• Harsh Binani: ~14 years in consulting and coworking.

• Saumya Binani: Strategic management role.

Their combined experience is shaping Smartworks’ expansion across India’s top business hubs.

Financial Performance: Growth but Losses Persist

Revenue from Operations:

• FY23: ₹7,440.70 Million

• FY24: ₹11,131.10 Million

• FY25: ₹14,096.69 Million

Revenue CAGR (FY23–FY25): ~37% — very strong topline growth.

EBITDA:

• FY23: ₹4,566.76 Million

• FY24: ₹7,334.16 Million

• FY25: ₹8,928.77 Million

Indicates operational scale and margin improvement.

Profit After Tax (PAT):

• FY23: ₹ -1,010.46 Million (loss)

• FY24: ₹ -499.57 Million (loss)

• FY25: ₹ -631.79 Million (loss)

Despite revenue growth, losses remain consistent, raising investor concern about breakeven timelines.

Valuation Metrics

• Pre-issue EPS: ₹ -6.18 (negative)

• Post-issue EPS: ₹ -5.54 (negative)

• Pre-issue P/E Ratio: -65.85x (NA)

• Post-issue P/E Ratio: -73.52x (NA)

• Industry P/E Ratio: ~63x

Clearly, Smartworks has no positive P/E. Losses mean traditional valuation multiples are less useful.

Return Metrics:

• ROCE (FY24): 42.30%

• ROE (FY24): -80.00%

• RoNW: -58.76%

ROCE shows good operational returns on capital employed. But negative ROE and RoNW indicate high leverage and negative shareholder returns.

IPO Allotment Guide: How to Check Status

Allotment results will be out on 15 July 2025. Investors can check:

1. Visit MUFG Intime India IPO Allotment Portal.

2. Choose Smartworks Coworking Spaces IPO from dropdown.

3. Enter Application Number / PAN / DP Client ID.

4. Click Submit to view allotment.

Strengths, Opportunities, and Risks

Strengths:

• Strong revenue growth (~37% CAGR).

• Anchor investor support.

• Managed workspace demand growing in India.

Opportunities:

• Rising demand from MNCs, corporates for flexible offices.

• Potential to leverage post-pandemic hybrid work models.

• Strong brand recall in metro cities.

Risks:

• Persistent losses with no near-term breakeven.

• High debt burden requiring significant cash flows.

• No GMP indicates lukewarm investor demand.

• Valuation uncertainty in a cyclical real estate market.

✅ ChatGPT Investment Verdict

Given the no GMP, loss-making financials, high debt, and tepid early subscription:

✅ Retail Investors: ⚠️ Avoid for Listing Gain
✅ HNIs/Institutional Investors: ⚠️ Careful evaluation needed for long-term thesis

While the business model is strong and revenue growth real, profitability remains elusive. In India’s SME and real estate-linked IPO environment, such loss-making listings often face downside listing risks.

Final Take

Smartworks Coworking Spaces IPO showcases India's growing appetite for premium, flexible office solutions. But for 2025 investors, fundamentals suggest caution is warranted.

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 Monika Alcobev, NSDL, Anthem Biosciences, Spunweb Nonwoven.

The Current active IPO are Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control, Glen Industries.

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