Smartworks IPO to open on July 10; fresh issue size cut to ₹445 crore

Smartworks Coworking Spaces is set to launch its initial public offering (IPO) on July 10, with the three-day issue closing on July 14. The flexible workspace operator, which secured approval for its IPO from the Securities and Exchange Board of India (Sebi) in December 2024, has revised its fresh issue size from the previously planned ₹550 crore to ₹445 crore.

According to the red herring prospectus (RHP) filed with Sebi, the IPO will comprise a fresh issue of equity shares worth ₹445 crore, along with an offer for sale (OFS) of up to 33.79 lakh shares worth ₹137.56 crore by the promoters. The OFS component has also been reduced from the originally proposed 67.59 lakh shares in the draft red herring prospectus (DRHP) submitted in August 2024. The company has not disclosed the reason why the issue size was reduced.

The company has fixed the price band at ₹387-407 per share, looking to garner ₹582.56 crore at the upper end of the price band. The market capitalisation of Smartworks Coworking is pegged at around ₹4,645 crore.

The lot size for retail investors has been set at 36 shares, requiring a minimum investment of ₹14,652 for one lot. The company has reserved 50% of the IPO for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and the remaining 35% for retail investors.

The allotment for the Smartworks Coworking IPO is expected to be finalised on July 15, while its shares are expected to be listed on the BSE and the NSE on July 17, 2025.

Smartworks proposes to utilise the IPO proceeds for the repayment of certain borrowings availed by the company; meet capital expenditure for fit-outs in the new centres and for security deposits of the new centres to be deployed in the financial years 2025, 2026, and 2027. The balance amount will be used for general corporate purposes.

The office experience and managed campus platform will use ₹226 crore for capital expenditure, ₹114 crore for repayment of loans, and the remaining funds for general corporate purposes.

Incorporated in 2015, Smartworks Coworking Spaces is engaged in the business of customised managed workspace solutions, serving mid-to-large enterprises, including Indian corporates, MNCs, and startups. The company is the largest managed campus operator amongst its benchmarked peers, in terms of total stock as of March 31, 2024. The managed campus platform consists of a total super built-up area (SBA) of 8 million sq. ft (msf) across 41 centres in 13 cities such as Bengaluru, Pune, Hyderabad, Gurugram, Mumbai, Noida and Chennai, with 182,228 Seats, as of March 31, 2024.

As of March 31, 2024, Smartworks’ operational centres across India served 603 clients occupying 130,047 seats. Further, it has 618 clients with 149,660 seats, out of which 8,691 seats are yet to be occupied at their operational centres by the respective clients.

JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd and Kotak Mahindra Capital Company Ltd are managing the company's IPO process.

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