Smartworks Coworking Spaces marked its stock market debut with a premium listing on Thursday, 17 July 2025. The shares were listed at ₹436.10 on the BSE and ₹435 on the NSE, reflecting a 7% and 6.88% premium respectively, over the issue price of ₹407 per share. The company’s listing was in line with broader market expectations and demonstrated positive investor sentiment.
IPO Performance and Subscription Details
The IPO witnessed strong demand from investors across all categories. At close, the public offer was subscribed 13.92 times. This encouraging participation showcased the market’s confidence in the company’s business model and growth prospects.
The IPO size was revised before launch, with the fresh issue component reduced to ₹445 crore from the earlier planned ₹550 crore. The offer for sale (OFS) by promoters was also cut to 33.79 lakh equity shares from the originally proposed 67.59 lakh shares. Following the IPO, the promoter holding decreased from 65% to 59%.
Institutional Participation and Fund Utilisation
Ahead of the issue, Smartworks Coworking Spaces raised ₹173.6 crore through a pre-IPO placement to institutional investors. The participants included Tata Mutual Fund, Axis New Opportunities AIF, Aditya Birla Sun Life Insurance Company, Baroda BNP Paribas Mutual Fund, SBI General Insurance, BNP Paribas, and Societe Generale, among others.
From the IPO proceeds, approximately ₹226 crore will be allocated to capital expenditure for fit-outs and security deposits at new centres. Around ₹114 crore is earmarked for loan repayments, while the remainder will support general corporate purposes.
Company Overview: Tech-Enabled Managed Workspaces
Smartworks Coworking Spaces operates in the segment of managed workspace solutions. It provides custom-built, fully serviced, tech-enabled office campuses for enterprises. These workspaces are designed with functionality and aesthetics in mind, featuring amenities such as cafeterias, gyms, medical centres, and sports zones to foster a productive environment.
The company focuses on leasing large, unfurnished properties in prime city locations and converting them into state-of-the-art office campuses. Its clientele mainly comprises mid to large-sized enterprises with workspace requirements exceeding 300 seats.
As of FY25, Smartworks has expanded its footprint across major Indian cities including Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram, and Chennai. The company has added 2.83 million square feet under management between FY23 and FY25, delivering a robust CAGR of 20.80%.
Financial Growth and Market Position
Smartworks has exhibited strong financial momentum. Adjusted EBITDA surged more than 3.5 times over the two-year period—from approximately ₹36 crore in FY23 to ₹172 crore in FY25. The net debt of the company currently stands at around ₹300 crore, reflecting prudent capital management as it scales operations.
Prominent stakeholders in the company include family offices from Ananta Capital, Hexaware, Enam Group, Deutsche Bank (which holds a 1% stake), and early-stage investor Madhu Kela.
Conclusion
The successful listing of Smartworks Coworking Spaces underscores the growing demand for flexible, technology-driven office solutions in India’s evolving workspace ecosystem. The company’s focus on enterprise clients, coupled with its expansion strategy and efficient capital deployment, positions it well for long-term growth. With a strong market debut and solid fundamentals, Smartworks is poised to play a prominent role in the future of managed workspaces.
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