Smartworks Coworking Spaces IPO Opens July 10 with ₹582.56 Crore Issue at ₹407 Per Share for BSE, NSE Listing

Smartworks Coworking Spaces Limited, a leading provider of customised managed workspace solutions, is set to open its Initial Public Offering (IPO) on July 10, 2025. The company is targeting to raise ₹582.56 crore through a combination of fresh issue and offer for sale, making this one of the significant real-estate tech IPOs on the Indian markets this year.

The IPO closes on July 14, 2025, with allotment expected on July 15, 2025. Shares are planned to list on the BSE and NSE on July 17, 2025.

Issue Structure and Price Band

The Smartworks Coworking Spaces IPO is a book-building issue with the following details:

• Price Band: ₹387 to ₹407 per equity share

• Fresh Issue: 1.09 crore shares aggregating to ₹445.00 crore

• Offer for Sale (OFS): 0.34 crore shares aggregating to ₹137.56 crore

• Total Issue Size: 1.43 crore shares, aggregating to ₹582.56 crore

An employee reservation of 1,01,351 shares is offered at a discount of ₹37 per share.

Minimum Investment and Lot Size

Retail investors can bid for a minimum of 1 lot (36 shares).

• Retail Minimum Amount: ₹13,932

• Retail Maximum (13 lots): ₹1,90,476

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

• bNII Minimum: 69 lots (2,484 shares) = ₹10,10,988

This structure supports varied investor segments, ensuring accessibility while meeting SME market participation standards.

Timeline for Investors

Key IPO dates for investor convenience:

• IPO Opens: July 10, 2025 (Thursday)

• IPO Closes: July 14, 2025 (Monday)

• Allotment Date: July 15, 2025 (Tuesday)

• Refund Initiation: July 16, 2025 (Wednesday)

• Credit to Demat: July 16, 2025 (Wednesday)

• Listing Date: July 17, 2025 (Thursday)

Investors must confirm UPI mandates by 5 PM on July 14 to ensure their bids are valid.

Company Profile: Leading Managed Workspace Provider

Incorporated in 2015, Smartworks Coworking Spaces Limited delivers customised managed workspace solutions across India.

Their offerings include:

• Fully serviced, tech-enabled office environments

• Aesthetic designs and essential amenities tailored for enterprise needs

• Focus on employee well-being through facilities like cafeterias, gyms, crèches, and medical centres

Client Base: The company serves mid-to-large enterprises, MNCs, Indian corporates, and startups.

As of March 31, 2025:

• Clients served: 738

• Seats offered: 152,619 (currently 169,541 seats, with 12,044 unoccupied)

Their large leased campuses include Vaishnavi Tech Park in Bengaluru—one of India's largest coworking spaces.

Business Model: An Integrated Campus Platform

Smartworks operates a managed campus platform connecting:

• Clients: Large enterprises seeking cost-effective, modern workspaces.

• Landlords: Non-institutional property owners partnering to transform spaces.

• Employees: Beneficiaries of amenities-rich, collaborative work environments.

• Service Partners: Brands like Chaipoint, ClearTax enhancing service delivery on campus.

This approach creates long-term leases, rental assurance for landlords, and consistent occupancy for Smartworks.

Financial Performance

Smartworks Coworking Spaces has demonstrated strong revenue growth, albeit with profit challenges.

FY23–FY25 (₹ in crore):

Observations:

• Revenue CAGR is robust, showing 27% growth in FY25 vs FY24.

• EBITDA Margins improved to 62.39% in FY25.

• PAT remains negative, indicating profitability challenges.

• Borrowings reduced, reflecting partial deleveraging.

Key Ratios (as of March 31, 2025):

• ROCE: 42.30%

• Debt/Equity: 2.90

• RoNW: -58.76%

• Price to Book Value: 38.58

Valuation Metrics

Based on RHP data:

• Pre-Issue EPS: -6.12

• Post-Issue EPS: -5.54

The negative EPS indicates ongoing net losses, despite strong operational EBITDA.

Market Capitalisation at IPO price: ~₹4,644.82 crore.

Objectives of the Issue

The net proceeds will be used for:

1. Repayment/prepayment/redemption of certain borrowings – ₹114.00 crore.

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

3. General corporate purposes.

This allocation aims to strengthen the balance sheet, reduce debt, and expand capacity for future growth.

Reservation and Allocation Structure

Total Shares Offered: 1.43 crore

• QIB: 71.10 lakh shares (50%)

• NII: 21.33 lakh shares (14.89%)

• Retail: 49.77 lakh shares (34.75%)

• Employee: 1.01 lakh shares (0.71%)

Employees get a ₹37 discount per share.

Competitive Strengths

• Market leadership in India's managed workspace segment.

• Scale and execution: Ability to lease and transform large properties.

• Focus on enterprise clients with high seat requirements.

• Operational efficiencies supported by strong tech infrastructure.

• Risk mitigation through balanced landlord-client relationships.

Risks to Consider

• Consistent net losses despite revenue growth.

• High debt-to-equity ratio could pressure balance sheet.

• Negative RoNW indicates shareholder dilution risk.

• Macro risks: Demand sensitivity to economic cycles and remote work trends.

Recommendation and Conclusion

Given high revenue growth, market leadership, and strong EBITDA margins, Smartworks Coworking Spaces IPO offers an opportunity to participate in India’s commercial real estate transformation.

However, negative PAT, high leverage, and valuation multiples suggest caution.

Our view:

• Suitable for risk-tolerant investors seeking long-term exposure to India’s flexible workspace boom.

• Investors should carefully evaluate the risk-reward balance, particularly around profitability and debt reduction plans.

  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,  Anthem Biosciences.

  ---

  The Current active IPO are Glen Industries, Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech.

  ---

  Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

  ---

  Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.