Smartworks Coworking Spaces IPO: GMP rises to 7%; issue subscribed 11% on day 1
Smartworks Coworking
Spaces saw a muted start, with 11% subscription recorded as of 10:57 am on Day 1 of bidding, Thursday, July 10.
The offer received bids for 11.64 lakh shares against the total issue size of 1.04 crore shares. Demand was led by non-institutional investors (NIIs), who subscribed 18% of their allotted quota, followed by retail investors at 15%. The employee reserved portion was also subscribed 18%. However, the qualified institutional buyer (QIB) segment was yet to see any bids.
Smartworks Coworking IPO GMP
Meanwhile, in the grey market, Smartworks shares were trading at a premium of Rs 30–32 over the issue price, up from Rs 25–27 ahead of the IPO launch. This translates to a grey market premium (GMP) of about 7%, compared to around 6% previously.
Smartworks Coworking IPO Details
Smartworks is looking to raise between Rs 576 crore and Rs 583 crore through a combination of a fresh issue and an offer for sale. The IPO will remain open for subscription until July 14, with listing scheduled for July 17 on the BSE and NSE.
The issue comprises a fresh equity issue worth Rs 445 crore and an offer for sale of 33.79 lakh shares. The price band has been fixed at Rs 387–407 per share, with an employee discount of Rs 37. Bidding is available in lots of 36 shares and in multiples thereafter.
Company Overview
Founded in 2015, Smartworks is India's largest managed workspace operator by leased area, with over 8.99 million sq ft across 50 centres in 15 Indian cities as of March 31, 2025. The company also has two operational centres in Singapore.
Smartworks primarily serves mid-to-large enterprises across sectors such as IT, BFSI, and startups. It operates on a straight lease model, and is gradually adopting variable rental agreements to improve cost efficiency.
Use of Proceeds
Of the net proceeds, Rs 225.8 crore will be used for fit-outs and security deposits at new centres, while Rs 114 crore is earmarked for debt repayment. The remaining funds will be used for general corporate purposes.
Financials
Smartworks has demonstrated strong top-line growth. Revenue from operations nearly doubled from Rs 711.39 crore in FY23 to Rs 1,374.05 crore in FY25. EBITDA also saw significant improvement, rising to Rs 857.26 crore in FY25. However, the company continues to be loss-making, posting a net loss of Rs 63.17 crore for FY25, although margins have steadily improved.
As of March 2025, the company had an occupancy rate of 83.1%, serving 738 enterprise clients across a seating capacity of over 2 lakh.
Smartworks' offerings include value-added services such as wellness zones, convenience stores, and design-build (FaaS) solutions, aimed at enhancing its enterprise-first positioning.
Book-Running Lead Managers
The IPO is being managed by
JM Financial
, BOB Capital Markets,
IIFL Securities
, and Kotak Mahindra Capital.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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