Smartworks Coworking Spaces IPO Off to a Cautious Start, Subscribed 72% by Mid-Day on Day 2

Mumbai, 11 July 2025: The public issue of Smartworks Coworking Spaces witnessed moderate demand on the second day of bidding, with the overall subscription reaching 0.72 times as of 11:19 AM. While non-institutional investors (NIIs) showed strong interest, the qualified institutional buyer (QIB) segment remained inactive. The issue opened for subscription on 10 July 2025 and will close on 14 July 2025.

Retail and NII Segments Lead the Way, QIBs Stay on the Sidelines

As of the second day of the issue, the IPO received a positive response from retail and NII categories. The retail portion was subscribed 0.85 times, indicating healthy but not overwhelming interest. Non-institutional investors outperformed expectations with a 1.35 times subscription, mainly driven by high-net-worth individuals applying in the bNII category (bids above ₹10 lakh), which saw 1.57 times subscription. Meanwhile, the sNII category (bids below ₹10 lakh) recorded 0.91 times subscription.

However, the QIB portion showed no traction at this stage, remaining unsubscribed with negligible bids. This is not unusual in book-building issues, where institutional demand typically emerges closer to the closing date.

Anchor Investor Portion Fully Subscribed

Prior to the public bidding, Smartworks raised ₹173.64 crore from anchor investors, subscribing to 42.66 lakh shares. This early commitment set a positive tone, even though the overall investor interest is yet to build broad momentum across all categories.

Employee Quota Sees Modest Participation

Shares reserved for employees-offered at a ₹37 discount to the issue price-saw a 0.69 times subscription. Out of 1,01,351 shares allocated for employees, around 70,236 bids were received, reflecting cautious but notable participation from the internal stakeholders.

Total Bids and Application Count by Day 2

By the end of Day 2, the IPO received bids for 71.92 lakh shares against 1 crore shares offered (excluding the anchor quota), with a total application count of 97,662. The cumulative bid amount stood at approximately ₹292.72 crore, based on the upper price band of ₹407 per share.

Subscription Trend Over Two Days

On Day 1 (10 July 2025), the IPO was subscribed 0.52 times overall, led by early interest from NIIs (1.04 times) and modest interest from retail (0.60 times) and employees (0.50 times). By Day 2, overall demand improved to 0.72 times, largely fuelled by increased bidding from NIIs and retail investors.

IPO Structure and Allocation Breakdown

The Smartworks Coworking Spaces IPO comprises a total issue size of ₹582.56 crore, split between a fresh issue of 1.09 crore shares aggregating to ₹445.00 crore and an offer for sale of 0.34 crore shares worth ₹137.56 crore. The issue is being conducted via the book-building process and is priced between ₹387 to ₹407 per share.

The lot size for retail investors is 36 shares, amounting to a minimum investment of ₹13,932. For sNII applicants, the lot size is 14 lots (504 shares), while bNII bidders must invest in 69 lots (2,484 shares), with corresponding values of ₹2,05,128 and ₹10,10,988 respectively.

Company Profile and Business Strategy

Smartworks Coworking Spaces Limited specialises in managed office solutions, providing fully serviced, tech-enabled workspaces tailored to enterprise clients. Its facilities are equipped with modern designs and essential amenities including cafeterias, gyms, crèches, and wellness centres. The company primarily caters to large corporates, multinational firms, and fast-growing startups.

Utilisation of IPO Proceeds

The net proceeds from the fresh issue are intended to serve the following purposes:

• ₹114 crore for repayment or prepayment of certain outstanding borrowings
• ₹225.84 crore for capital expenditure related to fit-outs and security deposits for new centres
• Remaining funds will be allocated towards general corporate purposes

Listing and Allotment Timeline

The IPO is scheduled to close on 14 July 2025. Share allotment is expected to be finalised by 15 July 2025, with the tentative listing date set for 17 July 2025 on both BSE and NSE. JM Financial Limited is acting as the lead book-running manager, while MUFG Intime India Private Limited is the registrar to the issue.

As investor interest continues to build, the final days of bidding will be crucial in determining the success of this ₹582.56 crore IPO.

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