Smartworks IPO raises ₹583 crore with strong investor demand. Shares list at a 9.5% premium, signaling confidence in India’s coworking sector.
Smartworks IPO Launches with Strong Investor Demand, Targets ₹583 Crore Fundraise
Smartworks, India’s leading provider of managed coworking spaces, has officially launched its Initial Public Offering (IPO) with a target to raise ₹583 crore. The offering includes a mix of fresh equity issuance and an offer-for-sale by existing stakeholders. With a price band set between ₹387 and ₹407 per share and a lot size of 36 shares, the IPO has generated strong interest from retail and institutional investors alike.
Robust Subscription Numbers
The IPO saw solid traction across all investor categories. Non-Institutional Investors (NIIs) led the charge with the highest subscription rate, followed closely by Retail Individual Investors (RIIs). Qualified Institutional Buyers (QIBs) showed moderate but steady interest. By the end of the bidding period, the issue was oversubscribed multiple times, underscoring growing market confidence in the coworking sector.
Strategic Use of Funds
Smartworks plans to deploy the IPO proceeds toward expansion, infrastructure development, and debt reduction. Approximately ₹445 crore will be used to scale operations and fit out new centers in key metro cities, while ₹114 crore is allocated for repaying existing debt. This strategic financial move is expected to reduce the company’s debt-to-equity ratio significantly, positioning it for sustainable growth.
Operational Strength
With over 8.9 million sq. ft. of managed office space across 50 centers in 15 cities, Smartworks has built a solid foundation in the premium flexible workspace market. The company serves a primarily enterprise clientele, setting it apart in a sector that is often dominated by startups and freelancers. In FY25, Smartworks reported revenues of ₹1,374 crore and an EBITDA of ₹172 crore, demonstrating strong operational efficiency. Although it posted a net loss of ₹63 crore, the improving financial metrics indicate positive momentum.
Strong Market Debut
Smartworks shares made a successful debut on the stock exchanges, opening at a premium over the issue price. The listing day saw steady intraday movement, with the stock closing nearly 9.5% higher. The positive listing reflects investor confidence in the business model and the future of the flexible workspace sector.
Outlook
The Smartworks IPO marks a pivotal moment in India’s coworking industry. With a focus on enterprise-grade managed spaces, strategic capital deployment, and a growing demand for hybrid office solutions, Smartworks is well-positioned to lead the next phase of growth in the segment.