Smartworks IPO to Open on July 10th

New Delhi, July 7: Smartworks Coworking Spaces, a prominent player in India’s flexible office space sector, is set to launch its Initial Public Offering (IPO) on July 10, 2025. Smartworks IPO will close on July 14, 2025, with bidding for anchor investors opening on July 9. The company’s shares are tentatively expected to be listed on July 17, 2025, on both the BSE and NSE.

The IPO launch comes as the Gurugram-headquartered company reported a widening net loss of ₹63.17 crore in the financial year 2024-25, compared to ₹49.95 crore in the previous fiscal. This increase in losses occurred despite a significant 32% jump in revenue from operations, which rose to ₹1,374.05 crore from ₹1,039.36 crore in FY24. Smartworks attributed these losses to total income falling short of overall expenses, but expressed confidence in achieving profitability by scaling revenue and reducing proportional costs in upcoming periods.

IPO Details and Fund Utilisation

The company has revised its IPO size downward from its initial plans. The fresh issue component is now set at ₹445 crore (earlier ₹550 crore), and the Offer for Sale (OFS) has been reduced to 33.79 lakh shares (earlier 67.59 lakh shares). The price band for the IPO has been fixed at ₹387 to ₹407 per share, implying a total IPO size of approximately ₹583 crore at the upper end of the price band.

From the IPO proceeds, Smartworks plans to allocate:

• ₹226 crore for capital expenditure on fit-outs and security deposits for new centres.
• ₹114 crore towards loan repayments.
• The remaining funds will be utilised for general corporate purposes.

Operational Footprint and Expansion Plans

Smartworks currently operates 48 centres across India, boasting over 1.9 lakh seating capacity, solidifying its position as one of the country’s leading coworking operators. The company’s business model involves leasing large office spaces from property owners and then sub-leasing them to large corporations.

As of now:

• 8.31 million sq ft is operational
• 0.7 million sq ft is under fit-outs
• 1.7 million sq ft is leased but yet to be taken possession of

Once the pending and in-progress spaces are accounted for, Smartworks’ total portfolio is projected to surpass 10 million sq ft, positioning it for further growth in India’s evolving office market. This expansion aligns with the increasing demand for flexible workspaces, driven by the adoption of hybrid work models and rising enterprise-level demand. The Indian flexible office space market is experiencing significant growth, with projections of continued expansion and major players leveraging technology to offer enhanced services.

What’s Ahead For Smartworks?

Smartworks’ IPO launch marks a pivotal moment in its growth journey, offering both opportunity and risk. Despite widening losses, the company’s robust 32% revenue growth and aggressive expansion strategy highlight strong market demand. With IPO funds earmarked for fit-outs and debt reduction, Smartworks aims to scale efficiently and edge closer to profitability. However, investor sentiment will hinge on its ability to control costs, execute timely expansion, and navigate rising competition in the coworking sector. The post-listing phase will be closely watched for early signs of margin improvement and sustainable growth.

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