Smartworks Coworking Spaces IPO: A New Chapter Begins

NEW DELHI: The much-anticipated initial public offering (IPO) of Smartworks Coworking Spaces Ltd has officially opened for subscription, marking a significant milestone in the Indian market. With plans to raise Rs 576–583 crore, this IPO is set to make waves among investors.

IPO Details at a Glance

The IPO features a fresh issue of Rs 445 crore and an offer for sale (OFS) of 33.79 lakh equity shares, with a price band set at Rs 387–407 per share. A special Rs 37 discount is available for employees, making this an attractive opportunity for those within the company.

Market Response and Subscription Rates

As of the first day, the IPO was subscribed 23%, with non-institutional investors (NIIs) leading the charge at 37% of their allotted quota, followed closely by retail investors at 30%. The grey market premium (GMP) for the stock is currently around 8% over the issue price, indicating strong market confidence.

About Smartworks Coworking Spaces

Founded in 2015, Smartworks has grown to become India’s largest managed office space provider, with over 8.99 million sq. ft. across 50 centres in 15 cities and two in Singapore. Serving a diverse clientele from IT, BFSI, and startup sectors, Smartworks is redefining the coworking space industry.

Financial Health and Future Plans

Despite being loss-making, Smartworks has shown remarkable revenue growth, from Rs 711.39 crore in FY23 to Rs 1,374.05 crore in FY25. The company plans to use the IPO proceeds for setting up new centres, debt repayment, and general corporate expenses, signaling a clear path towards expansion and financial stability.

Final Thoughts

With its expanding presence and innovative business model, the Smartworks IPO presents a unique opportunity for investors interested in the dynamic commercial property and flexible workspace industry. However, potential investors should weigh the risks and rewards carefully before making a decision.