Smartworks Coworking Spaces IPO: Subscription status on day 1, GMP, allotment date & more

The initial public offering (IPO) of Smartworks Coworking Spaces was off to day muted bidding from the investors during the first day of the bidding process as the bidding was mostly led by HNI and retail bidders. The issue, which kicked off on Thursday, July 10, shall close for bidding on Monday, July 14.

Smartworks Coworking Spaces is selling its shares in the price band of Rs 387-407 apiece. Investors can apply for a minimum of 36 shares and its multiples thereafter. It is looking to raise Rs 586.52 crore via IPO, which is a fresh share sale of Rs 445 crore and offer-for-sale (OFS)of up to 33.8 lakh equity shares.

According to the data, the investors made bids for 37,96,848 equity shares, or 37 per cent, compared to the 1,04,01,828 equity shares offered for the subscription by 3.20 pm on Thursday, July 10, 2025. The three-day bidding for the issue shall continue for three-days.

The allocation for retail investors was subscribed 46 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 63 per cent. Allocation of employees was booked 46 per cent. However, the quota set aside for qualified institutional bidders (QIBs) was yet to see any bids as of the same time.

Incorporated in 2015, New Delhi-based Smartworks Coworking Spaces is engaged in the business of customized managed workspace solutions, offering fully serviced, tech-enabled office environments with aesthetic designs and essential amenities to meet the specific needs of enterprises and their employees.

The grey market premium (GMP) of Travel Food Services has remained stable amid the rising volatility in the broader markets. Last heard, the company was commanding a premium of Rs 30-32 per share in the unofficial market, suggesting 7-8 per cent listing gains for the investors.

Analysts mostly have a positive view on this issue and suggest subscribing to it citing their rising revenue and demand for remote and co-working office spaces. However, loss making business, high debt and negative cash flows are the major concerns for the company.

"Smartworks incurred net losses in the last two fiscal years. Smartworks appears undervalued relative to Awfis on EV/Ebitda terms but the discount reflects execution risk and current lack of profitability. Prima facie the issue appears negatively priced, but has good cash surplus for the reported periods," said Swastika Investmart. "Investors may apply for short term listing gains."

Ahead of its IPO, Smartworks raised a total of Rs 173.64 crore from anchor investors as it allocated 42,66,378 shares at Rs 407 apiece. It has reserved shares worth Rs 3.75 crore for its eligible employees, who will get a discount of Rs 37 per share. Of the net offer, qualified institutional buyers (QIBs) will get 50 per cent shares, while non-institutional investors (NIIs) will have 15 per cent shares. Retail investors will have 35 per cent of allocation.

For the financial year ended on March 31, 2025, the company reported a net loss of Rs 63.18 crore with a revenue of Rs 1,409.67 crore. It clocked a net profit of Rs 49.96 crore with a revenue of Rs 1,113.11 crore for the financial year 2023-24. Smartworks Coworking Spaces shall command a market capitalization of Rs 4,644.82 crore.

Smartworks has a presence in 15 cities and operates 50 centres, positioning it well to benefit from the expected growth. It aims to strategically expand into the variable rental and management contract models as well and intends to deploy cross-selling as the company scales existing ancillary lines and build new ones, said Master Capital Services suggesting to 'subscribe for long-term' rating.

JM Financial, IIFL Capital Services, BoB Capital Markets and Kotak Mahindra Capital Company are the book-running lead managers of the Smartworks IPO, while MUFG Intime India (Link Intime) is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with July 17, Thursday, as the date of listing.