Smartworks IPO Ignites ₹582 Crore Bid Frenzy—Will Investors Lock In or Log Out?

Image Source: Times Of India

Smartworks Coworking Spaces Ltd has launched its ₹582.56 crore IPO today, July 10, aiming to strengthen its footprint in India’s flexible office space market. The issue comprises a ₹445 crore fresh issue and a ₹137.56 crore offer for sale, with a price band of ₹387–₹407 per share.

Key highlights:

Anchor investors have already pumped in ₹173.64 crore, including Tata Mutual Fund, SBI General Insurance, and Societe Generale
Grey market premium stands at ₹29–₹32, indicating a listing price of ₹436–₹439
IPO closes on July 14; allotment expected by July 15 and listing on July 17

Business overview:

Smartworks operates 50 centres across 15 Indian cities and 2 in Singapore, with over 2 lakh seats and 83.1% occupancy
Revenue surged from ₹711 crore in FY23 to ₹1,374 crore in FY25; EBITDA doubled to ₹857 crore
Despite growth, net loss widened to ₹63.17 crore in FY25 due to high operating costs

Use of proceeds:

₹226 crore for fitouts and security deposits for new centres
₹114 crore for debt repayment
Remaining funds for general corporate purposes

Should you apply?

Analysts offer mixed views. Anand Rathi recommends a longterm subscribe, citing Smartworks’ assetlight model and scalable operations. Others urge caution due to ongoing losses and capital intensity.

Sources: Business Standard, Economic Times, CNBC TV18, Moneycontrol, Chittorgarh, IPOWatch, MSN India, Smartworks RHP, PTI, BSE filings