Smartworks Coworking Spaces IPO: Rs 582 Cr Issue Subscribed 52% on Day 1, GMP Up 7% - Will You Apply?

Gurugram-based Smartworks Coworking Spaces Ltd received 52% subscription on day 1. Smartworks Coworking Spaces opened its Rs 582.56 crore IPO for public subscription on July 10, 2025, and it will remain open until July 14.

The company, which provides customised, tech-enabled office spaces, aims to raise Rs 445 crore through fresh shares and Rs 137.56 crore via an offer-for-sale (OFS).

Subscription Details:

As of the end of Day 1, the Smartworks IPO was subscribed 52%. Retail investors subscribed 60%, non-institutional investors (NII) subscribed 1.04 times, while qualified institutional buyers (QIB) did not place any bids yet. According to Chittorgarh.com data at 5:04 PM, the company received 52,51,068 bids for the 1,00,56,237 shares on offer.

Smartworks Coworking GMP:

As of today, the grey market premium (GMP) for Smartworks Coworking Spaces IPO is Rs 32 at 4.30 PM, according to investorgain.com. This means investors are willing to pay Rs 32 more than the highest IPO price of Rs 407. Based on this, the estimated listing price of the shares could be around Rs 439, which is about 7.86% higher than the issue price.

However, analysts caution that GMP is not a guarantee of listing success.

Smartworks Coworking Spaces IPO Details:

The IPO price band for Smartworks Coworking Spaces is set at Rs 387-Rs 407 per share, with a lot size of 36 shares. The currently open IPO will close on July 14. The share allotment is expected on July 15, and listing is scheduled for July 17, 2025, on BSE and NSE.

Investors can apply for a minimum lot of 36 shares, requiring an investment of Rs 13,932 for retail buyers. For high-net-worth individuals, the sNII category requires an investment of Rs 2,05,128 (504 shares), and the bNII category requires Rs 10,10,988 (2,484 shares).

The IPO has reserved 1,01,351 shares for employees, who will receive a Rs 37 per share discount.
The lead managers for the Smartworks Coworking Spaces IPO are JM Financial, BOB Capital, IIFL Capital, and Kotak Mahindra Capital. The registrar handling the IPO process is MUFG Intime India, also known as Link Intime.

Funds will be used for capital expenditure of Rs 226 crore, loan repayment of Rs 114 crore, and general corporate purposes.

Anchor Investment:

Smartworks Coworking Spaces received Rs 174 crore anchor investment ahead of the IPO. It allocated 42.7 lakh equity shares at the upper price of Rs 407 each with a face value of Rs 10 to 13 anchor investors, as per stock exchange data.

Some of the key anchor investors include Tata Mutual Fund, Baroda BNP Paribas, Axis New Opportunities AIF - Series II, Aditya Birla Sun Life Insurance, and Buoyant Opportunities Strategy II.

About Smartworks Coworking Spaces:

Smartworks Coworking Spaces, founded in 2015, offers fully serviced, tech-enabled office spaces tailored for businesses. It serves Indian companies, MNCs, and startups, providing modern campuses with amenities like cafeterias, gyms, and medical rooms.

As of March 31, 2025, it had 728 clients and managed 169,541 seats, with 12,044 still unoccupied. The company also operates four of India's five largest leased office centers, including Bengaluru's 0.7 million sq. ft. Vaishnavi Tech Park.

While the company has shown strong revenue growth, it reported a net loss of Rs 63.17 crore last year, mainly due to lease accounting under Ind AS 116.

Smartworks Coworking Spaces IPO Review:

Smartworks Coworking Spaces has mixed reviews across financial firms. Bajaj Broking has given it a subscription for the long term. While Canara Bank had recommended avoiding it.

"Smartworks has shown good revenue and cash EBITDA growth, although it is currently reporting net losses due to high lease costs and accounting rules under Ind AS 116, which raise interest and depreciation expenses.

"The IPO is priced at a P/BV of 38.58 based on its pre-IPO NAV of Rs 10.55 and 8.40 based on the post-IPO NAV of Rs 48.45. Given its strong business model and future growth potential, investors may consider subscribing to the IPO for the long term," noted Bajaj Broking.

"Although the long-term outlook for the company looks promising, the IPO does not seem attractive right now due to low profits and a lack of clarity. Hence, this IPO should be avoided," noted Canara Bank. They suggest investors should wait and re-evaluate the stock after it gets listed, and invest once the company shows steady profits and better financial transparency.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor GoodReturns. The author, nor the brokerage firm nor GoodReturns would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.