Smartworks Coworking Spaces Ltd will launch its initial public offering (IPO) in the Indian primary market on 10 July 2025. The bidding for the public offer will stay available until 14 July 2025. This indicates that the first offer will stay available for bidders from Thursday this week until Monday next week. The Smartworks Coworking IPO price range has been set by the company at ₹387 to ₹407 for each equity share. The firm intends to secure ₹582.56 crore, with ₹137.56 crore allocated for offer-for-sale (OFS). The leftover ₹445 crore is anticipated from the issuance of new shares.
This article presents an in-depth review of Smartworks Coworking Spaces IPO, detailing its business activities and fundamental analysis to assist you in making a well-informed investment decision.
Smartworks Coworking Spaces IPO Review
Smartworks Coworking Spaces functions as an all-inclusive office experience and managed campus solution, primarily targeting mid-to-large-sized businesses in India. The company boosts workplace productivity for Indian and multinational corporations by converting conventional bare-shell properties into fully serviced, technology-driven workspaces under the ‘Smartworks’ brand. These campuses aim to provide more than simply workspaces by incorporating contemporary design, smart configurations, and diverse facilities that enhance employee wellness and cooperation.
Smartworks Coworking Spaces is preparing for its Initial Public Offering (IPO), targeting to raise Rs 582.56 crore. The net proceeds from the Fresh Issue will be utilized for the partial or complete repayment of loans, investment in capital for fit-outs and security deposits for new centers, as well as for general corporate purposes. The selling shareholders will receive the proceeds from the Offer for Sale.
The firm has demonstrated significant revenue increase, mainly fueled by lease rentals. The EBITDA has increased more than twofold from FY23 to FY25, with solid margins of approximately 59–63%, reflecting effective cost management. RoCE has significantly increased, going from 11.90% to 42.30%, demonstrating enhanced capital efficiency.
Nevertheless, substantial depreciation and amortization costs from unoccupied leased properties, totaling Rs 635.99 crore in FY25, have greatly influenced profitability, resulting in persistent net losses for the last three years, with losses in FY25 reaching Rs 63.18 crore.
Subsequently, in comparing Smartworks to its competitors, the company outstrips Awfis in size, generating greater operational revenue, yet it falls short in terms of profitability. The firm additionally disclosed a negative EPS and RoNW, signaling persistent losses and a decline in net worth.
That being the case, prospective investors are highly recommended to carry out their own independent evaluations and seek advice from financial consultants prior to making any investment choices. Continue reading to learn more about the company’s history, business approach, and strategies for growth.
Let’s explore the pros and cons to evaluate whether the Smartworks Coworking Spaces IPO is beneficial or detrimental for investors.
Advantages
Market dominance:
With a lease-backed portfolio of 8.99 million sq. ft. spanning 50 centers in 15 cities, the firm is India’s largest campus management operator. Supported by a robust CAGR of 20.80% in the sector, its nationwide presence, scale, and first-mover advantage persist in fostering consistent growth and market leadership.
Extensive knowledge in large campus settings:
The firm focuses on leasing and converting expansive, unfinished properties in major Tier 1 urban areas into comprehensive, amenity-loaded ‘Smartworks’ campuses. Operating in 19 out of 28 strategic clusters and four locations exceeding 0.5 million sq. ft., they provide comprehensive facility management.
Business emphasis:
The organization focuses on medium-to-large businesses with seating needs often surpassing 300, providing tailored workspace solutions in Tier 1 and Tier 2 cities. Long-term agreements, a presence in multiple cities, and collaborations in various sectors such as IT, fintech, and consulting foster revenue consistency and scalable expansion.
Effective implementation:
By utilizing standardized designs, modular installations, and proprietary technology, the company provides affordable, high-quality workspaces with quicker completion times. Reduced capital and operating expenses, along with tools such as BuildX and intelligent building systems, promote operational efficiency and improve client experience on a large scale.
Capital efficiency:
The firm employs a capital-light approach, achieving a payback timeframe of 30–32 months for Mature Centres, which is considerably less than the industry average. Utilizing customer deposits, rental discounting, and a staged development strategy, it reduces initial capital requirements and enhances working capital efficiency.
Risk resilience:
The firm’s risk-reducing approach guarantees financial security via enduring client agreements, varied tenant composition, and lease income that surpasses landlord responsibilities. Its careful client diversification limit and presence across multiple sectors further protect it from sectoral or cyclical disruptions.
Risk
Risk of geographic concentration:
More than 75% of rental income in FY25 originates from Pune, Bengaluru, Hyderabad, and Mumbai, so any negative changes in these major cities could affect occupancy, revenue, and overall financial results.
Risk of client concentration:
Dependent on significant enterprise clients with over 300 seats restricts bargaining leverage and presents revenue threats, as the loss of these clients or the inability to obtain comparable replacements may affect business performance and cash flows.
Risk of acquiring clients:
Long-term fixed-cost lease contracts place the company under financial pressure if client occupancy decreases, since it is required to keep paying increasing rents irrespective of income, which could affect cash flows and profitability.
Broker reliance risk:
Greater dependence on property consultants and brokers for obtaining clients could affect profitability, weaken brand distinction, and subject the business to disadvantageous conditions, particularly if rivals achieve superior agreements or receive preferential treatment.
Segment difficulties:
The flexible workspace sector encounters built-in risks such as market oversaturation, economic instability, client turnover, supply issues, and rental market pressures, all of which could impact business stability, cash flow, and growth opportunities if not properly addressed.
Risks associated with leverage:
The firm’s elevated debt-equity ratio could restrict its borrowing potential, increase the risk of credit default, and obstruct its capability to maintain growth or obtain funding under advantageous conditions.
Fluctuating rental risk:
As one of the company’s strategies, the variable rental model is currently not very effective, since only 33,504 sq. ft. of 450,000 sq. ft. at the Gurugram Centre is operational. Thus, if the business is unable to secure clients for the remaining slots, it will impact the company’s finances.
Smartworks Coworking Spaces GMP
Smartworks Coworking plans to list its IPO on the BSE and NSE. Prior to the launch of the Smartworks Coworking IPO, the company’s shares have appeared in the grey market. Market observers report that shares of Smartworks Coworking Spaces Ltd are currently priced at a ₹29 premium in the grey market (GMP).
Source: Livemint Media Report dated July 9, 2025
Disclaimer: The GMP (Grey Market Premium) price is an unauthenticated market related news and has no discernible basis. The same quoted above is as per news appeared in the media report and is for information purposes only. The investor shall do their own study/research before using the same for taking any decision to invest. We neither engage in, trade, or deal in the grey market nor we recommend or endorse trading in the grey market.
Smartworks Coworking Spaces Initial Public Offering Information
Dates for IPO
The IPO for Smartworks Coworking Spaces will be available for subscription between July 10, 2025, and July 14, 2025. Shares will be distributed to investors on July 15, 2025, and the firm will debut on the NSE and BSE on July 17, 2025.
Initial Public Offering Price
Smartworks Coworking Spaces is providing its shares at a price range of Rs 387 to Rs 407 each. This indicates that you would need an investment of Rs. 14,652 per lot (36 shares) if you are participating in the IPO at the highest price range.
IPO Dimensions
Smartworks Coworking Spaces is releasing a total of 1,43,13,400 shares, valued at Rs 582.56 crores, with 1,09,33,660 shares from a fresh issuance and the other 33,79,740 shares through an offer for sale.
Status of IPO Allotment
Investors that submitted applications for the IPO can verify their IPO allotment status on July 15, 2025, via the registrar’s website: MUFG Intime India Private Limited, BSE, NSE, or their brokerage platform.
IPO Listing Date
The stocks of Smartworks Coworking Spaces will debut on the NSE and BSE on July 17, 2025.
Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.
