Smartworks Coworking Spaces IPO Subscribed 1.46x On Day 3 So Far: Should You Apply? Check GMP, Price, Lot Size, Review | Ipo News

Last Updated:July 14, 2025, 10:38 IST

The GMP of the Smartworks Coworking Spaces IPO currently stands at 4.91%, indicating mild listing gains.

Smartworks Coworking Spaces IPO: Apply Or Not?

Should I Subscribe To Smartworks Coworking Spaces IPO? The initial public offering of Smartworks Coworking Spaces Ltd is going to be closed today, Monday, July 14. The price band of the mainboard IPO, which aims to raise Rs 582.56 crore, has been fixed in the range of Rs 387 to Rs 407. Till 10:24 am on the first day of bidding on Monday, the issue received a 1.46 times subscription, garnering bids for 1,47,31,416 shares as against the 1,00,56,237 shares on offer.

The retail and NII participation stood at 1.51x and 2.45x, respectively. The QIB category received a 0.65x subscription.

The IPO’s grey market premium currently stands at 4.91%, indicating mild listing gains.

The three-day IPO was opened on July 10.

Smartworks Coworking Spaces Ltd, founded in 2015, provides customised, tech-enabled managed office spaces to 728 clients with 169,541 seats, including India’s largest leased campuses like Bengaluru’s 0.7 million sq ft Vaishnavi Tech Park. Currently, it has 48 operational co-working centres with over 1.9 lakh seating capacities.

Smartworks Coworking Spaces IPO GMP Today

According to market observers, unlisted shares of Smartworks Coworking Spaces Ltd are currently trading at Rs 427 against its upper IPO price of Rs 407. It means a grey market premium or GMP of Rs 20, which is 4.91% over its issue price, indicating mild listing.

The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Smartworks Coworking Spaces IPO Price And Lot Size

The price band of the IPO has been fixed in the range of Rs 387 to Rs 407 apiece.

Its minimum lot size is 36. It means investors will have to apply for a minimum of 36 shares or in multiple thereof.

Retail investors require a minimum capital of Rs 13,932 to apply for the IPO.

Smartworks Coworking Spaces IPO Allotment And Listing Dates

The basis of allotment of the Smartworks Coworking Spaces IPO will be finalised on July 15.

Its shares will be listed on both BSE and NSE, July 17.

Smartworks Coworking Spaces IPO: Should You Apply?

Smartworks is India’s largest managed campus operator with a leased portfolio of 8.9 million sq. ft. across 50 centres as of FY25. It operates in the fast-growing flexible workspace market, especially in Tier 1 cities, and has outpaced industry growth with a 38.3% CAGR from 2020–2024.

Giving a ‘Subscribe- Long Term’ rating to the IPO, brokerage firm Anand Rathi in its note said, “It is also shifting to an asset-light strategy through variable rental and management contracts, improving capital efficiency. Additional revenue streams like value-added services and Fit-out-as-a-Service further strengthen its business.”

On valuation, it said, “At the upper price band company is valuing at P/S of 3.3x with EV/EBITDA of 9.7x and market cap of Rs 46,448 million post issue of equity shares. We believe that the IPO is fully priced and recommend a ‘Subscribe Long term’ rating to the IPO.”

Another brokerage firm Bajaj Broking also gave a ‘subscribe for long term’ rating.

Bajaj Broking said SCSL has emerged one of the leading suppliers of office experience and managed campus platforms. It’s thrust on MNC customers with long term contracts has yielded desired benefits. The company has posted growth in its top lines with cash EBITDA at gross levels.

It, however, said the company posted losses at net levels following accounting provisioning required new accounting standards. The Company operates with a high lease liability due to its long-term, fixed-cost lease agreements across multiple centres. As a result, it incurs significant interest expenses and depreciation charges under the ‘Right-of-Use’ (ROU) asset accounting treatment, in accordance with IndAS 116. This accounting structure impacts the company’s EBITDA positively (as lease rentals are not included) but results in elevated finance costs and depreciation expenses, thereby exerting pressure on its net profitability.

“The issue is priced at a P/BV of 38.58 based on its NAV of Rs 10.55 as of March 31, 2025, and at a P/BV of 8.40 based on its post-IPO NAV of Rs 48.45 per share (at the upper cap),” Bajaj Broking said in the IPO note.

Smartworks Coworking Spaces IPO: More Info

The size of the fresh issue has been reduced to Rs 445 crore from the earlier planned Rs 550 crore, while the Offer For Sale (OFS) by promoters has been cut to 33.79 lakh shares from 67.59 lakh shares.

Smartworks Coworking Spaces has raised Rs 173.64 crore from anchor investors ahead of its initial public offer (IPO).

At the upper end of the price band, the company’s IPO size is now estimated at Rs 583 crore, with a market valuation of about Rs 4,645 crore.

Of the total proceeds from the fresh issue of shares, the company will use Rs 226 crore for capital expenditure related to the fit-outs in new centres and security deposits for these new centres.

It will utilise Rs 114 crore for payment of loans, and the remaining funds will be used for general corporate purposes. The OFS proceeds will go to promoters.

On the financial parameters, Smartworks has posted a net loss of Rs 63.17 crore in the last financial year due to higher expenses than income. Its net loss stood at Rs 49.95 crore in the preceding 2023-24 financial year.

However, the revenue from operations rose to Rs 1,374.05 crore in the 2024-25 fiscal from Rs 1,039.36 crore in the preceding year.

“These losses were on account of our total income being lower than the expenses for the relevant fiscal,” the company said in its red herring prospectus (RHP) filed with Sebi.

The company would aim to increase revenue levels and decrease proportionate expenses to achieve profitability.

Its total consolidated debt stood at Rs 382 crore at the end of April.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

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