Smartworks Coworking IPO Sees Moderate Start with 52% Subscription on Day One

Mumbai, 10 July 2025: Smartworks Coworking Spaces Limited’s initial public offering (IPO) witnessed a tepid response on its opening day, with an overall subscription of 0.52 times. The IPO, which opened for bidding on July 10, 2025, and will close on July 14, is a book-building issue aimed at raising ₹582.56 crore through a mix of fresh issue and offer for sale.

Retail and NII Investors Drive Early Momentum

Retail investors subscribed 60% of their allotted portion, while non-institutional investors (NIIs) showed relatively stronger interest, subscribing at 1.04 times. Within the NII segment, the bNII category—comprising high-value bids above ₹10 lakh—subscribed at 1.24 times, whereas the sNII category saw lower traction at 0.64 times. The employee quota saw a 50% subscription.

In contrast, there was no subscription recorded from Qualified Institutional Buyers (QIBs) as of 5:04 PM on Day 1. The anchor investor portion was fully subscribed, with 42.66 lakh shares allocated, garnering ₹173.64 crore.

Subscription Summary – Day 1 (5:04:39 PM)

• Anchor Investors: Subscribed 1.00 time
• Qualified Institutional Buyers (QIBs): Subscribed 0.00 times
• Non-Institutional Investors (NIIs): Subscribed 1.04 times
• Retail Investors: Subscribed 0.60 times
• Employees: Subscribed 0.50 times
• Total Subscription: 0.52 times

Total applications received stood at 69,849, and the total bid value amounted to ₹213.72 crore.

Issue Structure and Investment Details

The IPO comprises a fresh issue of 1.09 crore shares aggregating ₹445 crore and an offer for sale (OFS) of 33.79 lakh shares valued at ₹137.56 crore. The price band has been set at ₹387 to ₹407 per share, with a minimum lot size of 36 shares. Retail investors require a minimum investment of ₹13,932. For sNIIs, the entry point is 504 shares (14 lots) costing ₹2,05,128, while bNIIs need to invest in 2,484 shares (69 lots), amounting to ₹10,10,988.

A discount of ₹37 per share is offered to employees, with a reservation of up to 1,01,351 shares under this category.

IPO Allocation and Category-wise Share Offer

• Retail Investors: 49.77 lakh shares (₹202.58 Cr)
• QIBs: 71.10 lakh shares (₹289.40 Cr)
• NIIs: 21.33 lakh shares (₹86.82 Cr)
• Anchor Investors: 42.66 lakh shares (₹173.64 Cr)
• Employees: 1.01 lakh shares (₹4.12 Cr)

The company will be listed on both BSE and NSE, with the listing tentatively scheduled for July 17, 2025. Share allotment is expected to be finalised by July 15, 2025.

Objects of the Issue

Proceeds from the fresh issue are earmarked for the following purposes:

• ₹114 crore for repayment/prepayment of certain borrowings.
• ₹225.84 crore for capital expenditure and security deposits for new centres.
• Balance funds for general corporate purposes.

JM Financial is the book-running lead manager, while MUFG Intime India Private Limited (Link Intime) serves as the registrar to the issue.

Business Model: Value for Clients, Landlords, and Partners

Smartworks operates a managed campus model that creates an integrated ecosystem for clients, landlords, employees, and service partners.

• Clients: Enterprises benefit from scalable, cost-effective, and modern offices.
• Landlords: Properties are transformed into leased campuses, offering rental assurance.
• Employees: Workspaces are fully serviced and designed to boost productivity.
• Service Partners: Collaborations with companies like Chaipoint and ClearTax offer added amenities.

Company Overview: Tech-Enabled Workspaces for Enterprises

Smartworks Coworking Spaces Limited offers managed office solutions designed for large and mid-sized enterprises. These tech-enabled workspaces are customised for client needs and come with amenities like cafeterias, gyms, medical centres, and crèches to enhance employee well-being.

As of March 31, 2025, the company serviced 738 clients and 1,52,619 seats. Currently, it serves 728 clients with 1,69,541 seats, out of which 12,044 remain unoccupied. The company holds four of India’s five largest leased centres, including the 0.7 million sq ft Vaishnavi Tech Park in Bengaluru.

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