Smartworks, a leading coworking space provider in India, has announced the launch of its Initial Public Offering (IPO), which will open for subscription on July 10, 2025, and close on July 14, 2025. The company has set a price band of INR 387 to INR 407 per share, placing its valuation at approximately INR 4,650 crore (around $540 million) at the upper end of the price range.
Key Details of the Smartworks IPO
The Smartworks IPO will comprise two components:
- A fresh issue of up to INR 445 crore
- An Offer for Sale (OFS) of up to 33.79 lakh equity shares
This marks a significant reduction from the company’s earlier Draft Red Herring Prospectus (DRHP), where the fresh issue was planned at INR 550 crore and the OFS included 67.59 lakh shares. Smartworks’ decision to trim both the fresh issue size and the OFS component reflects strategic adjustments based on market conditions and investor sentiment.
Employee Reservation and Discount
Smartworks has also reserved equity shares worth INR 3.75 crore for its employees. To encourage participation, the company will offer a special discount of INR 37 per share to eligible employees applying under the reserved quota. This move aligns with Smartworks’ employee-first culture and aims to provide wealth-creation opportunities to its workforce.
Use of IPO Proceeds
The net proceeds from the fresh issue are expected to be utilized towards:
- Expansion of coworking centers across key Indian metro cities
- Repayment or prepayment of certain borrowings
- General corporate purposes
Smartworks plans to use the capital raised to strengthen its footprint and enhance customer experience in a rapidly growing flexible workspace market.
Company Overview
Founded in 2016, Smartworks has emerged as a leading provider of managed office solutions for enterprises in India. With a presence in major cities like Bengaluru, Mumbai, Delhi NCR, Hyderabad, and Pune, the company serves over 500 organizations, including many Fortune 500 companies. Smartworks specializes in offering tech-enabled, customizable workspace solutions that cater to the dynamic needs of modern businesses.
The company’s strong client base, high occupancy rates, and scalable business model make it a notable player in the commercial real estate and flexible office segment.
Market Outlook
India’s coworking and managed office space sector is witnessing strong demand, driven by hybrid work models and the rise of startups and SMEs. The IPO comes at a time when many companies are re-evaluating long-term office space requirements, making Smartworks well-positioned to capitalize on this evolving trend.
Final Thoughts
The upcoming Smartworks IPO offers an opportunity for investors to gain exposure to the fast-growing flexible workspace industry. With a competitive pricing band, robust valuation, and strategic use of funds, the IPO is likely to attract interest from both retail and institutional investors.
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