Smartworks Coworking IPO Opens: 'Subscribe' Says DRChoksey — Check Issue Details

DRChoksey Report

Smartworks Coworking Spaces Ltd.'s IPO opened today for subscription and the offer closes on July 14. An office experience and managed Campus platform company has fixed the price band in the range of Rs 387-Rs 407 Apiece.

Investors can place bids starting from a minimum of 36 shares and in multiples thereafter.

The Rs 582.5-crore IPO comprises of fresh issue of 1.09 crore shares worth Rs 445 crore, while the offer for sale component is of over 33 lakh shares worth Rs 137.5 crore.

JM Financial Ltd., BOB Capital Markets Ltd., IIFL Capital Services Ltd., Kotak Mahindra Capital Company Ltd. are the book-running lead managers for the public issue.

The allotment for the Smartworks Coworking Spaces IPO is expected to be finalized on July 15.

The shares will be listed on both the National Stock Exchange and the BSE on July 17.

Objects of the Offer

1. Repayment/ prepayment/ redemption, in full or in part of borrowings,

2. Capex for fit-outs and for security deposits of the New Centers,

3. General corporate purposes.

Outlook:

Smartworks Coworking Spaces, is India’s largest flexible and managed office workspace provider in B2B segment. As of March 2025, it managed a built-up area of 9.0 mn sqft. of managed workspace spread across 50 centers and 15 cities. It has been able to scale up its revenue and Ebitda at 39.0% and 42.2% CAGR over FY23-25.

Smartworks has integrated its operations through technology, and with its aggressive control over its OpEx and CapEx structure, it has maintained cost leadership position in the industry.

The company aspires to double its market share in the flexible office workspace over the next three-five years, led by rapidly adding up of the standalone office space to capitalize the domestic and GCC demand. The company plans to raise ~Rs 4.4 billion through fresh equity raise in the initial public offering, to fund the capex on fit-outs and security deposits for new centers and for repayment of the borrowings.

Smartworks Coworking Spaces initial issue is priced at 5.8 times trailing twelve months EV/Ebitda compared to 14.4x of its domestic listed peer and industry avg. of 6.8x TTM EV/Ebitda of global listed peers.

Moreover, the issue is priced at 20.4x FY25 EV/adjusted cash Ebitda compared to 49.9x FY25 EV/adjusted cash Ebitda of its domestic listed peer.

We find the issue to be attractively priced and assign a “Subscribe” rating to the issue