Smartworks Coworking IPO fully subscribed; 1.15 times on Day 2 of offering

The initial public offering (IPO) of Smartworks Coworking Spaces Ltd got subscribed 1.15 times on day two of bidding on Friday.

The IPO received bids for 120 million shares against 104 million shares on offer, according to NSE data.

The portion for non-institutional investors received 1.79 times subscription while the quota for retail individual investors (RIIs) got subscribed 1.18 times. The category for qualified institutional buyers (QIBs) received 63 per cent subscription.

Smartworks Coworking Spaces has raise ₹173.64 crore from anchor investors.

The IPO of Smartworks Coworking Spaces hit the capital market on Thursday to raise nearly ₹600 crore as the company intends to expand its business and reduce debt.

 

The company has fixed a price band of ₹387-407 per share for its IPO, which will close on July 14.

The size of the fresh issue has been reduced to ₹445 crore from the earlier planned ₹550 crore, while the offer for sale (OFS) by promoters has been cut to 33.79 lakh shares from 67.59 lakh shares.

At the upper end of the price band, the company's IPO size is now estimated at ₹583 crore, with a market valuation of about ₹4,645 crore.

Of the total proceeds from the fresh issue of shares, the company will use ₹226 crore for capital expenditure related to the fit-outs in new centres and security deposits for these new centres.

It will utilise ₹114 crore for payment of loans, and the remaining funds will be used for general corporate purposes. The OFS proceeds will go to promoters.

Gurugram-based Smartworks, one of the leading managed flexible office space providers, has 48 operational co-working centres with over 1.9 lakh seating capacities.

JM Financial Ltd, BOB Capital Markets Ltd and IIFL Capital Services Ltd are the book running lead managers to the IPO.