Smartworks Coworking shares trade at 7% premium following oversubscribed IPO

Gurugram-based Smartworks Coworking Spaces Ltd has made a successful market debut this week, with shares trading at a 7% premium following its initial public offering (IPO).

The stock commenced trading at Rs 435 on the National Stock Exchange and Rs 436.1 on the Bombay Stock Exchange, compared to the issue price of Rs 407. The public offering generated Rs 445 crore through issuance of new shares, while existing stakeholders sold shares valued at Rs 137.6 crore through an offer for sale (OFS).

The IPO was oversubscribed 13.92 times with total bids reaching approximately Rs 5,700 crore. This strong response was driven by both institutional and non-institutional investors.

Of the capital raised, the company has earmarked Rs 225.8 crore for capital expenditure and Rs 114 crore for debt repayment. The remaining funds will support general corporate purposes. The company’s primary objectives include complete debt elimination, infrastructure development financing, and supporting broader business operations.

Smartworks is a provider of premium office space and managed campuses. It specialises in contemporary work environments equipped with modern facilities and services. The company’s business model focuses on transforming underutilised real estate into branded Smartworks facilities.

Smartworks currently has 48 operational centres with a total seating capacity of over 1.9 lakh.

The company posted a net loss of Rs 63.17 crore in the last financial year (2024-25) due to expenses being higher than income. Its net loss stood at Rs 49.95 crore in the preceding financial year (2023-24). However, revenue from operations rose to Rs 1,374.05 crore in FY25 from Rs 1,039.36 crore in FY24.

Meanwhile, its competitor WeWork India Management Ltd has secured regulatory approval from the Securities and Exchange Board of India (Sebi) for its IPO. The offering comprises an OFS of up to 43.75 million equity shares by existing shareholders. Promoter Embassy Buildcon will sell up to 33.46 million shares, and investor 1 Ariel Way Tenant will offload up to 10.30 million shares, according to the draft red herring prospectus (DRHP) filed in February.

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