Smartworks Coworking Spaces Share Price Lists at 7% Premium on Market Debut

Smartworks Coworking Spaces Share Price Lists at 7% Premium on Market Debut

Market Debut Highlights

Smartworks Coworking Spaces made a promising stock market debut on Thursday, July 17, with its shares listing at a 7% premium over the issue price.

  • BSE Listing Price: ₹436.10 (+ 7%)
  • NSE Listing Price: ₹435 (+ 6.88%)
  • IPO Issue Price: ₹407

The listing aligns closely with grey market expectations, which had projected a premium of ₹25, implying a potential gain of around 6%.

Main News: IPO Performance and Investor Interest

The Smartworks IPO received strong investor participation, closing with a subscription rate of 13.92 times across all investor categories. The listing was considered a quiet but positive entry into the public markets.

IPO Structure Changes:

  • Fresh Issue: ₹445 Crore (earlier planned ₹550 Crore)
  • Offer for Sale (OFS): 33.79 lakh shares (cut from 67.59 lakh)

Promoter Holding:

  • Before IPO: 65%
  • Post IPO: 59%

The offering attracted marquee investors such as:

  • Deutsche Bank
  • Hexaware family offices
  • Enam Group
  • Ananta Capital

Additionally, angel investor Madhu Kela had invested in the company back in 2017.

Company Details: Smartworks Coworking Spaces

Smartworks Coworking Spaces provides customised managed office solutions that are fully serviced and tech-enabled. The company leases bare-shell properties and converts them into modern workspaces, complete with:

  • Cafeterias
  • Medical centres
  • Sports zones
  • Gym facilities

Clientele:

Focused on mid-to-large enterprises requiring more than 300 seats.

Key Cities of Operation:

  • Bengaluru
  • Hyderabad
  • Mumbai Metropolitan Region
  • Gurugram
  • Chennai

Growth in Space Under Management (FY23–FY25):

  • 2.83 million sq. ft. added
  • CAGR: 20.80%

Financial Overview

Revenue & Growth

Smartworks has shown solid topline growth, driven by demand from multinational clients under long-term lease contracts.

EBITDA

  • Adjusted EBITDA (FY25 vs FY23):
  • Increased 3.5X, from approx. ₹36 Crore to ₹172 Crore

Net Debt

  • Currently stands at approximately ₹300 Crore

Utilisation of IPO Proceeds

The company has earmarked its IPO funds for focused business expansion and debt reduction:

  • ₹226 Crore → Capital expenditure (fit-outs & security deposits)
  • ₹114 Crore → Loan repayments
  • Remaining funds → General corporate purposes

Summary

Smartworks Coworking Spaces' share price opened strongly with a 7% premium, reflecting the confidence of both institutional and retail investors. With robust EBITDA growth, targeted expansion, and firm investor backing, Smartworks marks a notable entry into the listed workspace solutions segment.

The company's strategic focus on tech-enabled, fully serviced office campuses, combined with a sharp rise in managed space, underpins its long-term operational strength.

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