Smartworks Coworking Shares Moved up 11% after Listing at 7% Premium: Should You Buy Now?

Smartworks Coworking Spaces is trading on the upper end. It made a promising debut on the stock market on Thursday, July 17, 2025, with its shares listing at a 7% premium over the issue price.

Investors who participated in the company's IPO saw a decent initial gain, as the stock performed slightly better than market expectations.

Smartworks Listing And Share Price Movement

The shares of Smartworks Coworking Spaces made an intraday high at Rs 469.25, rising up by 11.30% or 46.40 points after listing at Rs 435 on the NSE and Rs 436.10 on the BSE, both representing a premium of nearly 7% compared to the IPO issue price of Rs 407.

The listing aligned with the grey market's expectations, which had forecasted a 6% to 7% gain. The total market capitalization of Smartworks following the listing stood at Rs 5,167.30 crore.

The shares of Smartworks Coworking spaces is trading at Rs 453 up by 4.14% or 18 points at the time of writing.

Smartworks Coworking spaces IPO Subscription

The Rs 583-crore IPO, which was open for subscription from July 10 to July 14, attracted significant interest from investors, with the issue being oversubscribed 13.92 times. The IPO offered shares at a price band of Rs 387 to Rs 407.

The Smartworks IPO attracted strong interest from all investor groups. Qualified institutional buyers (QIBs) subscribed 24.92 times, non-institutional investors (NIIs) subscribed 23.68 times, and retail investors subscribed 3.69 times.

Should You Buy, Sell, or Hold Smartworks Stock?

Experts are optimistic about Smartworks' long-term growth potential. The company has achieved a compound annual growth rate (CAGR) of 38.37% between 2020 and 2024, significantly outpacing the industry average. Despite posting losses in recent fiscal years, Smartworks is well-positioned to benefit from rising demand for managed office spaces in India.

"The company has posted growth in its top lines with cash EBITDA at gross levels. Its thrust on MNC customers with long-term contracts has yielded desired benefits. Knowledgeable investors might park modest sums of money for the medium to long term, while others might take profits," said Shivani Nyati, Head of Wealth at Swastika Investmart.

"The solid listing reflects market confidence in Smartworks' scalable business model and its prospects in India's evolving commercial real estate landscape. Given the modest listing gains, short-term investors may consider booking partial profits, while long-term investors could hold the stock to benefit from sectoral tailwinds and the company's growth trajectory," said Gaurav Garg, Analyst at Lemonn Markets Desk.

Financials and Use of Proceeds

Smartworks plans to use the funds raised from the IPO for business expansion and debt reduction. A significant portion of the proceeds will be allocated for capital expenditure on fit-outs and security deposits for new centers, while a smaller amount will be used for general corporate purposes.

In FY 2025, the company reported a revenue of Rs 1,409.67 crore, up from Rs 1,113 crore in FY 2024. However, it has reported net losses in recent years, with a net loss of Rs 63.18 crore for FY 2025.

Company Overview

Founded in 2006, Smartworks Coworking Spaces is India's largest managed office space provider, with 8.99 million square feet of managed and leased space as of March 31, 2024. The company provides tech-enabled, fully serviced office spaces with a focus on mid-to-large companies, especially those needing over 300 seats.

Smartworks operates 48 coworking centers across 13 cities, including major business hubs like Bengaluru, Hyderabad, Gurugram, and Chennai. The company's business model centers on leasing large, bare-shell properties in prime locations and transforming them into fully serviced, modern campuses with essential amenities like cafeterias, gyms, and medical centers.

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