Smartworks Coworking ₹582-cr IPO kicks off today; should you apply or not?

Smartworks Coworking IPO opens today: Analysts believe that the IPO is fully priced and recommend a "Subscribe- Long term" rating

Smartworks Coworking IPO: Gurugram-based Smartworks Coworking Spaces, a workspace solutions company, is set to launch its initial public offering (IPO) today, July 10, 2025. At the upper end of the price band of ₹387 to ₹407, the company aims to raise ₹582.56 crore.

 

Ahead of the opening of the issue, Smartworks raised around ₹174 crore from anchor investors. The company allotted 4.27 million equity shares at the upper price band of ₹407 per share with a face value of ₹10 per share to 13 anchor investors, according to the exchange filing.

 

Out of the total allocation, 32.04 per cent was allocated to three domestic mutual funds, including Tata Mutual Fund, Baroda BNP Paribas and Trust Mutual Fund, which have applied through a total of four schemes.

 

Other investors are Axis New Opportunities AIF - Series II, SBI General Insurance Company Ltd, Aditya Birla Sun Life Insurance Company Ltd, Buoyant Opportunities Strategy II, Societe Generale, among others.

Smartworks Coworking IPO GMP

The unlisted shares of Smartworks were trading at ₹439 in the grey market, up ₹32 or 7.8 per cent from the upper end price, according to sources tracking unofficial market activities.  Check Travel Food Services IPO allotment status

Smartworks Coworking IPO: Should you subscribe or not?

Anand Rathi Research - Subscribe for long term

According to analysts at Anand Rathi Research, Smartworks runs a cost-efficient and scalable model with fit-out and operating costs significantly lower than industry benchmarks. The company 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.

 

"At the upper price band, the company is valued at P/S of 3.3x with EV/Ebitda of 9.7x and market cap of ₹4,644.8 crore post issue of equity shares," the brokerage said in a research note.

 

Analysts believe that the IPO is fully priced and recommend a “Subscribe- Long term” rating to the IPO. 

Geojit Investments - Subscribe for long-term

According to analysts at Geojit Investments, at the upper price band of ₹407, Smartworks Coworking is available at Mcap/Adjusted Ebitda ratio of 27x (FY25), which appears to be fairly priced compared to its peers. 

 

"Given its asset-light business model, capital efficiency through variable rental and management contracts, and the scale up of new revenue streams (like value-added services & fit–out as a service), which are margin accretive, further strengthen the business going forward. Hence, we recommend a ‘Subscribe’ rating on a long-term basis," the brokerage said.

Smartworks Coworking IPO details

Smartworks Coworking is a book-built issue comprising a fresh issue of 10.9 million equity shares aggregating to ₹455 crore and an offer for sale (OFS) of 3.4 million shares aggregating to ₹137.56 crore. NS Niketan, SNS Infrarealty and Space Solutions India are the selling shareholders.  

 

Investors can bid for a minimum of one lot or 36 shares of Smartworks and in multiples thereof.  According to the red herring prospectus (RHP), the company intends to utilise the net fresh issue proceeds to repay debt and capital expenditure for fit-outs in the New Centres and for security deposits of the New Centres. The remaining funds will be used for general corporate purposes. 

 

The three-day subscription window to bid for the issue will conclude on Monday, July 14, 2025. Following the closure of the subscription window, the basis of allotment of shares is likely to take place on Tuesday, July 15, 2025.

 

Shares of Smartworks are scheduled to make their D-street debut on Thursday, July 17, 2025, by listing on the BSE and NSE.

 

MUFG Intime India, formerly Link Intime, is the registrar for the issue. JM Financial, BOB Capital Markets, IIFL Capital Services, and Kotak Mahindra Capital Company are the book-running lead managers.