The Indian IPO market is buzzing again, and this time it's Smartworks Coworking Spaces grabbing investor attention. On Day 2 of bidding, the company’s initial public offering (IPO) has been subscribed 73%. What’s fueling this momentum? Who’s investing the most? Is this IPO worth your money?
In this blog post, we’ll walk you
through everything you need to know about the Smartworks IPO subscription
status, GMP trends, financial performance, business model,
and expert opinions in a simple and clear format.
Smartworks IPO Day 2 Subscription Status
As of 12:14 PM on Day 2 (July 11, 2025):
| Investor Category | Subscription (x) |
|---|---|
| Non-Institutional Investors (NIIs) | 1.36x |
| Retail Investors | 0.86x |
| Qualified Institutional Buyers (QIBs) | 0.03x (5,724 shares) |
| Total Subscription | 0.73x |
Important Dates:
·
IPO Open
Date: July 10, 2025
·
IPO Close
Date: July 14, 2025
·
Listing
Date: July 17, 2025 (BSE & NSE)
Smartworks IPO Grey Market Premium (GMP) Trends
The GMP for Smartworks shares has shown positive traction:
| Date | GMP (₹) | GMP (%) |
|---|---|---|
| Pre-IPO (July 9) | ₹25–27 | ~6.1% |
| Day 1 (July 10) | ₹30–32 | ~7.4% |
This steady rise in GMP reflects growing
investor interest, especially from the non-institutional side.
About Smartworks: India’s Largest Managed Workspace Brand
Founded in 2015, Smartworks
has grown to become India’s largest managed office space provider by
leased area.
Key Facts:
- Leased Area:
8.99 million sq ft
- No. of Centres:
50 across 15 Indian cities + 2 in Singapore
- Occupancy Rate:
83.1% (as of March 2025)
- Enterprise Clients:
738
- Seating Capacity:
Over 2 lakh
Smartworks offers customizable
office spaces mainly to mid-to-large enterprises, including IT,
BFSI, and startup sectors. Their unique "straight lease model"
is being gradually upgraded to include variable rental agreements,
helping with cost efficiency.
Financial Performance Snapshot
Despite being loss-making, Smartworks has seen strong revenue growth over the years.
| Financial Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | Net Profit/Loss (₹ Cr) |
|---|---|---|---|
| FY23 | 711.39 | 478.65 | -138.57 |
| FY24 (Est.) | 1,078.20 | 687.89 | -94.21 |
| FY25 | 1,374.05 | 857.26 | -63.17 |
Why still in loss?
· High lease costs
· Interest & depreciation under Ind
AS 116 accounting norms
· Expansion-related investments
IPO Fund Usage:
| Purpose | Amount (₹ Cr) |
|---|---|
| New fit-outs, security deposits | 225.80 |
| Debt repayment | 114.00 |
| General corporate purposes | Balance |
IPO Details at a Glance
| Details | Information |
|---|---|
| Total IPO Size | ₹576–583 crore |
| Fresh Issue | ₹445 crore |
| Offer for Sale | 33.79 lakh shares |
| Price Band | ₹387–407 |
| Lot Size | 36 shares |
| Employee Discount | ₹37 per share |
| Face Value | ₹2 per share |
| Book-Running Lead Managers | JM Financial, BOB Capital, IIFL Securities, Kotak Mahindra Capital |
Expert Recommendations: Mixed Signals
Anand Rathi: Subscribe – Long Term
"At the upper band, P/S ratio
of 3.3x and EV/EBITDA of 9.7x seem reasonable. Long-term investors can benefit
from business scalability."
SBI Securities: Avoid
"Compared to Awfis (profitable
player in same space), Smartworks is still loss-making. Risk-reward doesn’t
justify investment."
Bajaj Broking: Subscribe for Long Term
"Smartworks is a leader in
enterprise office space solutions. Focus on long-term MNC contracts and
design-build model makes it a solid play."
What Makes Smartworks IPO Unique?
1.
Strong Demand from NIIs
Non-institutional investors are
leading the charge. Their confidence shows the growth potential in the
premium coworking segment.
2.
Rising GMP Indicates Optimism
A consistent GMP of 7%+ suggests
possible listing gains, especially if market sentiment stays positive.
3.
Enterprise-Focused Strategy
Unlike retail-focused players, Smartworks
targets large enterprises and MNCs. This brings long-term stability in
contracts.
4.
Growing Market Opportunity
India’s flexible office market
is expected to grow at a CAGR of 20%+ over the next five years. Smartworks is
well-positioned to ride this wave.
Risks to Consider Before Investing
| Risk Factor | Explanation |
|---|---|
| Loss-making status | Despite growth, net losses persist due to high costs |
| Lease liability pressure | Fixed leases raise interest & depreciation burden |
| Competitive landscape | Faces competition from profitable players like Awfis |
| QIB response is weak (so far) | Institutional support is low – could affect sentiment |
Valuation Metrics
| Metric | Value |
|---|---|
| Price-to-Sales (P/S) | 3.3x (at upper band) |
| EV/EBITDA FY25 | 9.7x |
| Market Capitalization (Post IPO) | ₹4,644.8 crore |
Compared to Awfis’ EV/EBITDA of 26.5x,
Smartworks seems undervalued but comes with higher risk due to ongoing
losses.
Should You Invest in Smartworks IPO?
Here's a recommendation matrix based on investor profile:
| Investor Type | Suggested Action |
|---|---|
| Long-Term Investor | Subscribe – based on business scalability |
| Short-Term Trader | Moderate risk – watch GMP & Day 3 subscription |
| Conservative Investor | Avoid – due to losses & accounting risks |
| IPO Flipper | Risky – consider listing gains if GMP holds |
Final Thoughts
The Smartworks IPO represents
an opportunity to invest in India’s largest enterprise-focused coworking
brand. With solid revenue growth and improving EBITDA, it shows promise.
However, its loss-making nature, high lease burden, and mixed
analyst calls make this a high-risk, high-reward play.
If you're a long-term investor
comfortable with short-term volatility, this IPO could fit your portfolio. But
if you're looking for quick gains or low-risk entries, you may want to
wait and watch how the listing unfolds.
FAQs About Smartworks IPO
Q1: What is the GMP of Smartworks
IPO today?
As of July 11, the GMP is around ₹30–32, indicating a 7.4% premium.
Q2: Is Smartworks a profitable
company?
No, Smartworks is still loss-making but has improving margins and EBITDA.
Q3: What is the minimum investment
amount?
You need to buy at least one lot (36 shares) at ₹407, totaling ₹14,652.
Q4: When will Smartworks shares
list?
Listing is scheduled for July 17, 2025, on NSE and BSE.
Q5: Who are the lead managers of the
IPO?
JM Financial, BOB Capital Markets, IIFL Securities, and Kotak Mahindra Capital.
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