Smartworks Coworking Spaces’ initial public offering (IPO) opened for subscription on July 10, 2025, and will close on July 14, 2025. The company aims to raise Rs 582.56 crore through the offering of 1,43,13,400 equity shares. Of this, Rs 445 crore (1,09,33,660 shares) constitutes a fresh issue, while the remaining 33,79,740 shares (worth Rs 137.56 crore) are part of an offer for sale (OFS).
Both the fresh issue and OFS have been revised downward from earlier plans. The fresh issue was initially pegged at Rs 550 crore, and the OFS was reduced from 67.59 lakh shares to 33.79 lakh shares.
The price band for the IPO is fixed at between Rs 387 adn Rs 407 per share. Investors can bid for a minimum of 36 shares per lot, requiring an investment of at least Rs 13,932 in the retail category.
At the upper end of the price band, the company is expected to command a market capitalisation of approximately Rs 4,645 crore.
Use of proceeds
The net proceeds from the IPO will be allocated as follows:
- Rs 226 crore for capital expenditure, including fit-outs and security deposits for new centres
- Rs 114 crore for loan repayment, and the remaining amount will be used for general corporate purposes
Smartworks Coworking Spaces IPO: Allocation structure
- 50 per cent reserved for Qualified Institutional Buyers (QIBs)
- 35 per cent for retail investors
- 15 per cent for non-institutional investors (NIIs)
PSU brokerages cautious despite strong margins; assign ‘avoid’ rating
Analysts at PSU brokerages — SBI Securities and Canara Bank Securities — have taken a cautious stance on the Smartworks Coworking Spaces IPO, despite the company reporting a strong topline and a headline EBITDA margin of 62.39 per cent in FY25.
SBI Securities highlighted Smartworks Coworking Spaces Ltd. (SCSL) as a leading player in the customised managed workspace segment with a healthy operating profile. While the company generates solid operating cash flows, it continues to post net losses, largely due to high depreciation expenses. At the upper price band of Rs 407, the brokerage finds the valuation unattractive given the lack of bottom-line profitability.
SBI recommends avoiding the IPO and tracking the company post-listing — particularly focusing on capital efficiency under its variable rental model. The brokerage also pointed out that Awfis Space Solutions, a peer that is already profitable and trading at similar valuation multiples, offers a more compelling investment opportunity.
Canara Bank Securities have similar concerns. the brokerage noted that Smartworks remains loss-making, primarily due to accounting provisions under new lease standards, making the financials difficult for retail investors to interpret. While the company’s long-term potential is acknowledged, the brokerage believes the IPO is currently not favorable from a profitability and transparency standpoint.
“Investors may consider re-evaluating post listing, once the company demonstrates sustainable bottom-line performance and improved financial clarity,” Canara Bank Securities stated.
Brokerages positive on the IPO
In contrast, Anand Rathi has issued a ‘subscribe for long-term’ rating. The brokerage believes the IPO is fully priced but sees value for investors with a long-term horizon.
Similarly, Geojit Financial Services has assigned a ‘subscribe’ rating. According to the brokerage, the IPO’s upper price band appears to be fairly valued compared to listed peers, and the company’s scalable business model supports its long-term growth prospects.
Smartworks Coworking Spaces IPO: BRLMs, registrar details
The IPO is being managed by JM Financial, BOB Capital Markets, IIFL Securities, and Kotak Mahindra Capital Company. The company has appointed MUFG Intime India as the registrar.
About Smartworks Coworking Spaces
Smartworks is a leading provider of office spaces and managed campuses. The company leases large, bare-shell properties in key urban centres and converts them into modern, fully serviced, tech-enabled workspaces which include amenities such as cafeterias, gyms, sports zones, and medical centres. Smartworks has a strong presence in cities like Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram, and Chennai.
