Smartworks Coworking Spaces IPO — Should You Subscribe Or Not? Read Anand Rathi's Report

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Smartworks Coworking Spaces Ltd.'s IPO will open for subscription on July 10 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.

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.

Objects of the Issue

1. Repayment of certain borrowings availed by company and their subsidiaries.

2. Capital expenditure for fit-outs in the New Centres and for security deposits of the New Centres.

Valuation

Smartworks is India’s largest managed campus operator with a leased portfolio of 8.9 million sq. ft. across 50 centres as of FY25. It operates in the fast-growing flexible workspace market, especially in Tier 1 cities, and has outpaced industry growth with a 38.3% CAGR from 2020–2024.

The company focuses on mid-to-large enterprises, which ensures longer client lock-ins and stable revenue. With fit-out and operating costs significantly lower than industry benchmarks, Smartworks runs a cost-efficient and scalable model. It is also shifting to an asset-light strategy through variable rental and management contracts, improving capital efficiency.

Additional revenue streams like value-added services and Fit-out-as-a-Service further strengthen its business.

At the upper price band company is valuing at P/S of 3.3x with EV/Ebitda of 9.7x and market cap of Rs 46,448 million post issue of equity shares.

We believe that the IPO is fully priced and recommend a “SubscribeLong term” rating to the IPO.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.