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Smartworks Coworking Spaces has garnered INR 173.64 crore from anchor investors prior to launching its IPO, with shares allotted at INR 407 each. Of the total 42.66 lakh shares allocated, over 32% were subscribed by domestic mutual funds including Tata Mutual Fund, Baroda BNP Paribas, and Trust Mutual Fund. The IPO, sized at INR 583 crore at the upper price band, aims to raise INR 445 crore through fresh issue, with INR 226 crore earmarked for fit-out-related capital expenditure and INR 114 crore for loan repayments. Despite recent net losses, the company reported significant revenue growth in FY 2024-25.
Smartworks Coworking Spaces raised INR 173.64 crore from anchor investors ahead of its initial public offering, finalising the allotment of 42,66,378 equity shares at INR 407 per share. Over 32% of this allocation was absorbed by domestic mutual funds-Tata Mutual Fund, Baroda BNP Paribas, and Trust Mutual Fund-via four schemes. Other anchor investors included Axis New Opportunities AIF - Series II, SBI General Insurance, Aditya Birla Sun Life Insurance, Buoyant Opportunities Strategy II, and Societe Generale. Advertisement
The company is set to open its IPO with the goal of raising INR 583 crore at the upper end of the price band. The offering consists of a fresh issue of shares worth INR 445 crore and an Offer for Sale (OFS) involving 33.79 lakh shares, a reduction from the earlier plan of 67.59 lakh shares. The IPO is priced in the range of INR 387-407 per share and is aimed at funding business expansion and reducing the company's debt.
A substantial portion of the fresh issue proceeds-INR 226 crore-will be used for capital expenditure on fit-outs for new centres and the corresponding security deposits. An additional INR 114 crore is slated for loan repayments, while the remainder will support general corporate purposes. The OFS proceeds will go to the promoters.
Headquartered in Gurugram, Smartworks is among India's leading providers of managed flexible office spaces. Currently, the company operates 48 co-working centres with a cumulative seating capacity exceeding 1.9 lakh. Its total operational portfolio spans 8.31 million square feet, with another 0.7 million square feet under fit-outs. Additionally, Smartworks has signed lease agreements for 1.7 million square feet more, pending possession. Once operational, the total managed space will surpass 10 million square feet.
Financially, the company reported a net loss of INR 63.17 crore for the 2024-25 financial year, up from INR 49.95 crore in the previous year. The loss was attributed to total expenses outpacing income. However, revenue from operations rose sharply to INR 1,374.05 crore from INR 1,039.36 crore in the previous year. The company indicated in its red herring prospectus that improving revenue while curbing proportional expenses remains key to future profitability. As of April, its consolidated debt stood at INR 382 crore.
Smartworks functions by leasing commercial office spaces from property owners and sub-leasing them to corporate clients. The IPO marks a pivotal phase in its growth, potentially enhancing its footprint and financial position in the managed workspace sector.
Source - PTI
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