Smartworks Coworking Spaces IPO Opens: All You Need to Know
The IPO market is buzzing again, and
this time, the spotlight is on Smartworks Coworking Spaces Ltd, one of
India’s largest managed office space providers. The Smartworks Coworking
Spaces IPO opened on July 10, 2025, and investors are eager to know: Should
you subscribe? Let's explore everything you need to know in simple
English — no jargon, just facts and analysis with a human touch.
What Is Smartworks Coworking Spaces?
Founded in 2015, Smartworks
has grown rapidly in India's office space ecosystem. The company provides customised,
tech-enabled, and fully-managed coworking spaces to more than 728
clients, including large corporates and multinational companies.
As of FY25:
- Total Leased Area: 8.9 million sq. ft.
- Number of Centres: 50+
- Total Seats: Over 1.9 lakh
- Flagship Campus: Vaishnavi Tech Park, Bengaluru (0.7
million sq. ft.)
Smartworks has positioned itself as
the largest operator of managed campuses in India, focusing heavily on Tier
1 cities like Delhi NCR, Bengaluru, Mumbai, and Pune.
IPO Details at a Glance
| Parameter | Details |
|---|---|
| IPO Open Date | July 10, 2025 |
| IPO Close Date | July 14, 2025 |
| Price Band | ₹387 to ₹407 per share |
| Lot Size | 36 shares |
| Retail Investment (Min) | ₹13,932 |
| IPO Size | ₹582.56 crore |
| Fresh Issue | ₹445 crore |
| Offer for Sale (OFS) | 33.79 lakh shares |
| Listing Date (Tentative) | July 17, 2025 |
| Exchanges | NSE, BSE |
| GMP (as of July 10) | ₹32 (7.86% premium) |
Grey Market Premium (GMP) Today
The grey market premium for
Smartworks Coworking IPO is currently ₹32, meaning the shares are
trading at ₹439 in the unlisted market. That’s a 7.86% premium over
the upper issue price of ₹407 — suggesting mild listing gains.
But remember: GMP is not official
and can change quickly. It’s just a reflection of market sentiment.
What Is The Company Doing With The IPO Funds?
Out of the ₹445 crore raised via the
fresh issue:
- ₹226 crore → For fit-outs and security deposits for new
centres
- ₹114 crore → For loan repayment
- Rest → For general corporate purposes
The proceeds from the Offer for Sale (OFS) will go to the promoters, not the company.
Smartworks Financial Performance
| Metric | FY24 | FY25 (Estimated) |
|---|---|---|
| Revenue | ₹1,039 crore | ₹1,374 crore |
| Net Loss | ₹49.95 crore | ₹63.17 crore |
| Total Debt (as of April 2025) | – | ₹382 crore |
| Cash EBITDA (Gross Level) | Positive | Positive |
Despite posting losses, the
company has shown strong revenue growth and a positive cash EBITDA,
which is a good sign in the startup-style coworking business model.
Strengths of Smartworks IPO
1. India's Largest Managed Campus Operator
With over 8.9 million sq. ft.,
Smartworks dominates the managed office market in India.
2. Asset-Light Model
The company is moving towards a variable
rental and management contract model, which improves capital efficiency.
3. Diversified Client Base
Smartworks serves 728 clients,
including top MNCs and unicorn startups, reducing dependency on
any single tenant.
4. Revenue Growth
The company has grown its revenue at
a 38.3% CAGR between 2020 and 2024, outpacing the overall industry.
Risks & Weaknesses
1. Net Losses Continue
Despite revenue growth, the company
continues to post net losses, mainly due to high depreciation and
interest charges.
2. High Lease Liabilities
Because of long-term lease
commitments under IndAS 116, Smartworks incurs heavy finance and
depreciation charges.
3. Competitive Industry
Coworking is a highly competitive
market, with players like WeWork India, Awfis, and local operators competing
for space.
Valuation Check
| Metric | Value |
|---|---|
| Market Cap (Post IPO) | ₹4,645 crore |
| Price/Sales (P/S) | 3.3x |
| Enterprise Value/EBITDA | 9.7x |
| Price/Book Value (Post IPO) | 8.4x |
While the valuation appears fully
priced, it is not overly expensive considering the company’s
leadership and future prospects.
Subscription Status (As of Day 1, 11:07 AM)
| Investor Category | Subscription (x times) |
|---|---|
| Retail Investors | 0.16x |
| NII (HNI Investors) | 0.20x |
| Overall | 0.12x |
Early subscription figures are tepid,
but retail and HNI interest may pick up by Day 2 and 3.
Should You Subscribe?
Here’s a simplified view based on
your investor profile:
| Investor Type | Suggested Action |
|---|---|
| Short-term Trader | Apply with caution – GMP is positive but mild |
| Long-term Investor | Subscribe – sector leadership & revenue growth |
| Risk-Averse Investor | Wait & watch – losses, lease liabilities present |
Important Dates for Investors
| Event | Date |
|---|---|
| IPO Opens | July 10, 2025 |
| IPO Closes | July 14, 2025 |
| Basis of Allotment | July 15, 2025 |
| Refunds Initiated | July 16, 2025 |
| Shares Credited to Demat | July 16, 2025 |
| Listing Date | July 17, 2025 |
Final Verdict
The Smartworks Coworking Spaces IPO
is a mixed bag:
- Pros: Largest player, rapid revenue growth,
MNC clients, growing sector.
- Cons: Net losses, lease-based liabilities,
fully priced IPO.
If you're a long-term investor,
this could be a smart play in India's growing coworking market. But if
you're expecting quick listing gains, manage your expectations — as the
GMP is currently moderate.
FAQs on Smartworks Coworking IPO
Q1. What is the Smartworks Coworking
Spaces IPO price band?
A: ₹387 to ₹407 per share.
Q2. What is the IPO lot size?
A: 36 shares per lot. Minimum investment = ₹13,932.
Q3. What is the GMP today?
A: ₹32 as of July 10, 2025, or 7.86% premium.
Q4. When will the Smartworks IPO
allotment be announced?
A: July 15, 2025.
Q5. Is Smartworks a profitable
company?
A: No, it posted net losses due to depreciation and finance costs under
new lease accounting norms.
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