Smartworks raises Rs 173.64 cr from anchor investors ahead of IPO
IPO
).
In a regulatory filing on Wednesday, Smartworks finalised the allocation of 42,66,378
equity
shares to anchor investors at Rs 407 per equity share.
Out of the total allocation of 42,66,378 shares to the anchor Investors, 32.04 per cent were allocated to three domestic mutual funds, which have applied through a total of four schemes.
These three domestic mutual funds are Tata Mutual Fund, Baroda BNP Paribas and Trust Mutual Fund.
Other investors are Axis New Opportunities AIF - Series II, SBI General Insurance Company Ltd, Aditya Birla Sun Life Insurance Company Ltd, Buoyant Opportunities Strategy II, Societe Generale, among others.
Live Events
Smartworks Coworking Spaces will hit the
capital
market on July 10 to launch its IPO for raising nearly Rs 600 crore as the company intends to expand its business and reduce debt.
Gurugram-based Smartworks, one of the leading managed flexible office space providers, currently has 48 operational co-working centres with over 1.9 lakh seating capacities.
The company has fixed a price band of Rs 387-407 per share for its IPO, which will close on July 14.
The size of the fresh issue has been reduced to Rs 445 crore from the earlier planned Rs 550 crore, while the Offer For Sale (OFS) by promoters has been cut to 33.79 lakh shares from 67.59 lakh shares.
At the upper end of the price band, the company's IPO size is now estimated at Rs 583 crore, with a market valuation of about Rs 4,645 crore.
Of the total proceeds from the fresh issue of shares, the company will use Rs 226 crore for
capital expenditure
related to the fit-outs in new centres and security deposits for these new centres.
It will utilise Rs 114 crore for payment of loans, and the remaining funds will be used for general corporate purposes. The OFS proceeds will go to promoters.
On the financial parameters, Smartworks has posted a net loss of Rs 63.17 crore in the last financial year due to higher expenses than income. Its net loss stood at Rs 49.95 crore in the preceding 2023-24 financial year.
However, the
revenue
from operations rose to Rs 1,374.05 crore in the 2024-25 fiscal from Rs 1,039.36 crore in the preceding year.
"These losses were on account of our total income being lower than the expenses for the relevant fiscal," the company said in its red herring prospectus (RHP) filed with Sebi.
The company would aim to increase revenue levels and decrease proportionate expenses to achieve profitability.
Its total consolidated debt stood at Rs 382 crore at the end of April.
Smartworks takes on lease office spaces from landlords and then sub-leases the areas to corporates. It has an operational portfolio of 8.31 million square feet area while 0.7 million square feet is under fit-outs.
The company has taken on lease another 1.7 million square feet area from landlords, but it has not obtained possession to set up the centres.
The total portfolio will cross 10 million square feet, including spaces under fit-outs and signed.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
37 minutes ago
- Time of India
‘Green nod must for Manimajra housing'
Chandigarh: The environment department of Chandigarh administration has told the municipal corporation that the "user agency" is required to obtain a green clearance from the competent authority for the MC's Rs 700 crore housing project in Manimajra. The department has clarified that the said project falls under category 8(a) of the schedule to Environment Impact Assessment (EIA) notification, 2006, which makes it necessary for it to have a prior environmental clearance. The letter from the environment department to MC clearly states, "The township and area development projects covering an area of less than 50 hectares and/or built-up of more than 1,50,000 sqm fall under category 8(b) of the schedule to EIA notification, 2006, dated Sept 14, 2006, and rules made thereunder, require prior environmental clearance. For all such projects falling under category 8(a) & 8(b) of the schedule to EIA notification, 2006, dated Sept 14, 2006, and rules made thereunder, the user agency is required to obtain prior environmental clearance from the competent authority. " It adds, "The building and construction projects having built-up area less than 20,000 square metres and above 1,50,000 square metres fall under category 8(a) of the schedule to EIA, 2006, dated Sept 14, 2006, and rules made thereunder, require prior environmental clearance. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Could This NEW Collagen Blend Finally Reduce Your Cellulite? Vitauthority Learn More Undo Further, it is clarified that the term 'built-up area' for the purpose of this notification is the built-up or covered area on all floors put together, including its basement and other service areas, which are proposed in the building or construction projects." This development has come at a time when the cash-strapped MC was looking to dispose of the land as soon as possible to get money. However, with the UT administration now making it mandatory for the "user agency" to obtain environment clearance, the entire process is taking time. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
37 minutes ago
- Time of India
DU delays Veer Savarkar College opening as approval pending with ministry
New Delhi: Delhi University has ruled out holding a separate admission exercise for its newly built Veer Savarkar College, making the institution's launch entirely dependent on financial clearance from the education ministry. Vice chancellor Yogesh Singh told TOI that if approval does not come by end of the month, the college will not open this year and will instead take its first batch of students in 2026. The college will offer thousands of additional seats with a provision of reservation for local students — a first for the university. However, with the admission cycle for existing DU colleges nearing completion, officials said there is no scope for integrating a late entrant. "Unless the proposal is cleared this month, admissions will not happen this year," Singh said. The West Delhi project is part of DU's expansion plan to reach underserved areas of the capital and ease the pressure on its crowded North and South campuses. Prime Minister Narendra Modi laid the foundation stone in Jan for the campus, built at a cost over Rs 140 crore across an 18,816 square metres plot in Roshanpura. You Can Also Check: Delhi AQI | Weather in Delhi | Bank Holidays in Delhi | Public Holidays in Delhi | Gold Rates Today in Delhi | Silver Rates Today in Delhi The college will offer state-of-the-art facilities, laboratories, a central library and hostel facilities. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo A sports complex and auditorium are also planned as part of the project. The decision to provide a quota for local students, drawn from west Delhi districts, was taken to address long-standing demands from residents who often travel to far-off campuses for higher education. This provision makes Savarkar College the first DU institution to adopt such a model. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
an hour ago
- Time of India
Three arrested in Rs 353-crore investment scam in Vijayawada
Vijayawada: Police arrested three persons for their alleged role in a high-return investment scheme in Vijayawada. The action follows complaints lodged on April 14 by Narasaraopet residents Tripuramallu Srinivasa Rao and Kalavakollu Dilip Kumar, who said the operators induced investors with claims that their company UPIX Creations did animation work for Hollywood productions and was an internationally established firm, and promised huge returns on deposits. Tired of too many ads? go ad free now The victims are said to be have lost nearly Rs 353 crore in the alleged scam. Vijayawada police commissioner SV Rajashekara Babu said a special team arrested the prime accused from Vijayawada and two other persons from Guntur district. Police also seized items valued at about Rs 90 lakh, including 354 grams of gold, 21 kg of silver, a highend car, a BMW bike, and several computers. The accused's bank accounts have been frozen, and properties worth roughly Rs 23 crore linked to them are being processed for attachment. The arrested individuals were identified as Nidumolu Venkata Satya Lakshmi Kiran (33) from Satyanarayanapuram in Vijayawada, Mittapalli Rajendra Babu (63) and Mittapalli Rajeev Krishna (30), both from Krishna Nagar area in Guntur district. Main accused Kiran set up UPIX in 2014 and employed about 70 people. By 2018, he had linked up with associates and started soliciting deposits by promising to double investments in 12 months. Police said early 'returns' were showcased to attract more investors, who were brought in through relatives and friends, with commissions offered for mobilizing deposits. Funds were then diverted to personal accounts. While initial complaints referenced losses of around Rs 20 crore, police say the scale of the alleged fraud is far bigger. Investigators have identified about 183 victims from Narasaraopet, Guntur and Vijayawada who collectively deposited about Rs 353 crore in cash with the company. Tired of too many ads? go ad free now By the end of 2024, about Rs 194 crore of these deposits had been diverted into personal accounts of the accused, police said. The commissioner added that further investigation is underway to trace additional assets, verify the money trail, and identify any other persons who may have benefited from or facilitated the alleged scheme. Police have urged victims to approach Satyanarayanapuram police station with proof of their deposits to aid the probe under the Depositors Protection Act.
