Smartworks Coworking IPO Subscription Status: The initial public offering (IPO) of Smartworks Coworking hit the halfway mark on the first day of the bidding process on Thursday, with the non-institutional investors leading the charge.
The grey market premium (GMP) trend for Smartworks Coworking IPO remained healthy amid a lacklustre Indian stock market.
Smartworks Coworking IPO Subscription Status
Smartworks Coworking IPO was subscribed 50% at the end of the first day of the book-building process. The retail portion was subscribed 57%, while the NII portion sailed through, garnering 1 times bids. The qualified institutional buyers portion did not see any bids today, and the employee portion was booked 47%.
Smartworks Coworking IPO GMP
Smartworks Coworking IPO GMP today is ₹32. This means shares of Smartworks Coworking are trading ₹32 higher than their IPO price in the grey market. At the prevailing GMP and upper end of the IPO price band, Smartworks Coworking shares could list at ₹439 apiece on the exchanges, a premium of nearly 8%.
However, investors must note that GMPs are subject to change and should not be the only factor determining their investment choice. They should also consider company fundamentals and risk appetite before investing.
Smartworks Coworking IPO Details
Smartworks, which is India’s largest managed campus operator, launched its IPO on Thursday, July 10, with the issue set to remain open till Monday, July 14. Smartworks Coworking IPO, worth ₹582.6 crore, is a mix of fresh issue of ₹455 crore and offer for sale of ₹137.6 crore.
Smartworks Coworking Spaces IPO price band is set at ₹387 to ₹407 apiece, with a bid lot size of 36 shares and its multiples thereof. For retail investors, the minimum application price is ₹14,652 based on the upper end of the price band.
IPO proceeds will be used for partial pre-payment of certain borrowings, capex for fit-outs in the new centres and for security deposits of the new centres, and general corporate purposes.
In terms of financial performance, SmartWorks revenue from operations grew at a CAGR of 38.9% from ₹711 crore to ₹1,374 crore between FY23-FY25, , driven by aggressive office space expansion and steady demand from enterprise clients. EBITDA grew from ₹424 crore to ₹857 crore between the same period.
Over the past three years, the company has reported losses at the PAT level due to heavy depreciation and other non-cash items, despite generating positive operating cash flows. It has a net debt of ₹299 crore.
Smartworks Coworking IPO: Apply or not?
Analysts remained mixed on Smartworks Coworking’s IPO.
Geojit Financial Services recommended a Subscribe rating to the IPO. “Given its asset-light business model, capital efficiency through variable rental and management contracts, and the scale up of new revenue streams (like value-added services & fit–out as a service), which are margin accretive, further strengthen the business going forward. Hence, we recommend a ‘Subscribe’ rating on a long-term basis,” the brokerage said.
However, analysts at Ventura said they would recommend monitoring PBT turning positive with economies of scale improving further, without assigning any rating.
Canara Bank Securities had an Avoid rating, while MasterTrust said investors looking for long-term opportunities may consider investing in the IPO.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
