Smartworks Coworking’s ₹582 crore IPO opens today; raises ₹174 crore from anchor investors

The three-day initial public offering (IPO) of Smartworks Coworking Spaces will open for subscription today. A day before the issue hit D-Street, the coworking space solutions provider raised ₹173.64 crore from anchor investors.

Smartworks allocated a total of 42.66 lakh equity shares to the anchor investors at the upper end of the price band of ₹407 per share with a lot size of ₹10 apiece, the company said in an exchange filing.

Of the total 42.66 lakh shares allocated to anchor investors, 32.04% were subscribed by three domestic mutual funds through a combined total of four schemes. The participating mutual funds include Tata Mutual Fund, Baroda BNP Paribas Mutual Fund, and Trust Mutual Fund.

Other notable anchor investors include Axis New Opportunities AIF - Series II, SBI General Insurance Company Ltd, Aditya Birla Sun Life Insurance Company Ltd, Buoyant Opportunities Strategy II, and Societe Generale, among others.

₹582-cr IPO to hit D-Street today

The flexible workspace operator aims to raise ₹582 crore through its IPO, comprising a fresh issue of equity shares worth ₹445 crore and an offer for sale (OFS) of up to 33.79 lakh shares valued at ₹137 crore by the promoters.

The company has fixed a price band of ₹387-407 per share, looking to garner ₹582.56 crore at the upper end of the price band. The market capitalisation of Smartworks Coworking IPO 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 remaining 35% for retail investors.

Smartworks proposes to utilise the net proceeds from fresh equity issuance for repayment of certain borrowings availed by the company; meet capital expenditure for fit-outs in the new centres and for security deposits of new centres. 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.

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

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)