Smartworks Coworking Spaces IPO listing in focus: Smartworks Coworking Spaces made a healthy debut on Dalal Street today, July 17, as the stock listed with a 7% premium at ₹435 apiece on the NSE, compared to the issue price of ₹407. On the BSE, it opened 7.15% higher at ₹436.
Following the decent listing, the stock maintained its momentum, gaining another 8% to hit the day’s high of ₹469 apiece, about 15.23% above the IPO price. Although the shares debuted with modest gains, analysts remain optimistic about the company’s long-term prospects.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., said the company had a quiet, in-line-to-positive debut on the stock market with a listing gain of approximately 7%, listing around ₹435. “The company has posted growth in its top line, with cash EBITDA at gross levels. Its focus on MNC customers with long-term contracts has yielded the desired benefits. Knowledgeable investors might consider parking modest sums for the medium to long term, while others may book profits,” she added.
The issue was open for bidding from July 10 to July 14 and received a healthy response from investors, closing with a subscription of 13.92 times. The IPO comprised a fresh issue of 1.09 crore shares aggregating to ₹445 crore and an offer for sale of 0.34 crore shares worth ₹137.56 crore. The offering attracted bids for 14 crore shares against the 1 crore shares on offer.
The retail investor category was subscribed 3.69 times, while the non-institutional investor (NII) segment saw a subscription of 23.68 times. The qualified institutional buyer (QIB) portion was subscribed 24.92 times.
The company plans to utilize the net proceeds from the issue for repayment or prepayment of certain borrowings, capital expenditure for fit-outs in new centers, security deposits for new centers, and general corporate purposes.
About Smartworks Coworking Spaces
Smartworks Coworking is described as an office experience and managed campus platform. As per the RHP report, it is the largest managed campus operator among its benchmarked peers in terms of total stock as of March 31, 2024, with a leased and managed super built-up area (SBA) of 8.00 million square feet.
In terms of operational footprint, Smartworks manages 41 centers across 13 cities as of March 31, 2024. These include key business hubs such as Bengaluru, Pune, Hyderabad, Gurugram, Mumbai, Noida, and Chennai. The total seat capacity stood at 182,228 across the managed SBA of 8.00 million square feet.
The company’s revenue from operations comprises income from lease rentals, ancillary services, and software fees. For FY25, the company reported revenue of ₹1,409.67 crore, compared to ₹1,113 crore in FY24 and ₹744 crore in FY23.
However, the company has reported net losses over the past three fiscal years, with a net loss of ₹63.18 crore in FY25, compared to ₹49.96 crore in FY24 and ₹101 crore in FY23.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
