Smartworks Coworking Spaces Sets IPO Price Band at Rs 387 to Rs 407 Per Share

Smartworks Coworking Spaces Ltd on Monday fixed a price band of Rs 387-407 per share for its Rs 583 crore Initial Public Offering (IPO). The IPO is scheduled to open for public subscription on July 10 and conclude on July 14, and the bidding for anchor investors would open for a day on July 9, the company announced.

The company has revised its IPO size downward. The fresh issue has been reduced to Rs 445 crore from the earlier planned Rs 550 crore, while the Offer for Sale (OFS) has been cut to 33.79 lakh shares from 67.59 lakh shares. At the upper end of the price band, now the company's IPO size is estimated at Rs 583 crore, with a market valuation of about Rs 4,645 crore.

Proceeds from the fresh issue to the tune of Rs 226 crore will be used for capital expenditure related to the fit-outs in new centres and security deposits for these new centres, Rs 114 crore will be allocated for payment of loans, and the remaining funds will be utilised for general corporate purposes.

Smartworks Coworking Spaces Ltd is a leading platform for office experiences and managed campuses. It specialises in leasing large, bare-shell properties in prime locations and transforming them into fully serviced, tech-enabled campuses with modern amenities. These campuses include cafeterias, sports zones, gyms, medical centres, and more, offering a modern and attractive work environment.

The company cater to businesses of all sizes, with a focus on mid-to-large companies that need over 300 seats. The company is concentrated in cities including Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram and Chennai. Between FY23 and FY25, Smartworks expanded its operations by adding 2.83 million sq ft of space under management, achieving a CAGR (compound annual growth rate) of 20.80 per cent.

Its strong pan-India presence, competitive pricing, and ability to lease entire or large properties make it a preferred partner for mid-to-large enterprises. This is reflected in the 20.80 per cent CAGR in space managed and a 38.98 per cent CAGR in revenue from operations during the same period.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd and Kotak Mahindra Capital Company Ltd are responsible for managing the company's IPO process. The company shares are expected to be listed on July 17 on the BSE and NSE.