Source: The Economic Times
Smartworks Coworking Spaces will open its Initial Public Offering (IPO) on July 10, 2025. The public issue will remain open until July 14, while the bidding for anchor investors will open one day earlier, on July 9, as per the company’s red herring prospectus (RHP)
IPO Size Reduced
The company has decided to cut the size of its IPO. It has meaningfully reduced the size of its IPO. Earlier, Smartworks was looking to do a fresh issue of ₹550 crores but has now raised ₹445 crores in that size. The promoter sale through Offer for Sale is also down from 67.59 lakh shares to 33.79 lakh shares.
Financial Allocation
From the total proceeds of ₹445 crore that this company intends to raise:
- ₹226 crore will be allocated to build new office centers, which includes costs for interior spaces and security deposits
- ₹114 crore will be used to repay loans
- The budget for the remaining use of funds will be spent on working capital.
What Smartworks Does.
Smartworks specializes in modern, tech-enabled office spaces. The company will rent large empty properties in prime city locations and convert them into fully serviced campuses with cafeteria, gym, sports areas, medical areas, etc. The focus is on mid-sized and large customers that need 300 seats or more. The idea is to make it as easy as possible for the business customer, and provide a flexible option.
Cities and Presence
Smartworks operates in all the major cities in India including Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram and Chennai. It is firmly established throughout India and is among the preferred choices when companies are looking for large managed office spaces.
Growth Over Time
From FY23 to FY25, Smartworks added 2.83 million square feet to its overall management area. This resulted in a compound annual growth rate (CAGR) of 20.80% and a total area managed of 20.80%. With respect to revenue from operations, it also increased rapidly with a CAGR of 38.98%.
This significant growth indicates that more companies are selecting Smartworks for their workspace requirements, particularly in the hybrid work model that has developed during the newer post-COVID times.
IPO Managers
The IPO is managed by four financial firms:
- JM Financial,
- BOB Capital Markets,
- IIFL Securities, and
- Kotak Mahindra Capital Company.
Conclusion: Smartworks is entering the stock exchange at a time when flexible workspaces are increasingly in demand. With a solid growth trajectory, deep presence, and focus on the biggest clients, we hope to attract both domestic and international listed investors looking to take benefit from the evolving office space landscape in India.
