[Update] Smartworks IPO: Issue Closes With 13.5X Oversubscription

Update | July 14, 08:42 PM

The IPO of Smartworks closed with an oversubscription of 13.45X, with investors bidding for 13.9 Cr shares as against 1.04 Cr shares on offer. 

The portion for QIBs was subscribed the most at 24.4X, getting bids for 7 Cr shares against the 29.03 Lakh shares on offer. In this, FIIs placed bids for 1.3 Cr shares and domestic financial institutions bid for 1.5 Cr shares.

NIIs placed bids for 5 Cr shares as against 22.1 Lakh shares reserved for them, translating to 22.7X subscription. 

The retail investor portion saw 3.5X subscription, receiving bids for 1.8 Cr shares against 51.73 Lakh shares on offer. Employees bid for 2.5 Lakh shares as against 1 Lakh shares on offer, translating to 2.3X subscription.  

Original | July 14, 04:23 PM

Coworking company Smartworks’ public issue witnessed bumper response from qualified institutional buyers (QIBs) and non-institutional investors (NIIs) on the final day of bidding, with an overall oversubscription of 13X at 03:45 PM.

As per the data on the BSE, the issue received cumulative bids for 13.09 Cr shares as against 1.04 Cr shares on offer.

The portion reserved for QIBs was oversubscribed 24.4X, with them placing bids for 7.08 Cr shares against 29 Lakh shares on offer. Of these, foreign institutional investors bid for 1.35 Cr shares and domestic institutional investors for 1.51 Cr shares.

Close behind QIBs were NIIs, with an oversubscription of 22.24X. These investors bid for 4.9 Cr shares against 22.17 Lakh shares earmarked for them.

The retail investor portion was subscribed 3X, translating to 1.59 Cr bids against 51.73 Lakh shares on offer. The employee portion also saw 2.38 Lakh bids against 1.07 Lakh shares reserved for them.

Founded in 2016 by Neetish Sarda and Harsh Binani, Smartworks is a managed workspace provider. It leases large buildings from landlords, converts them into campuses, and then rents them out to large enterprises. It maintains an average lease tenure of 48 months and currently manages 10 Mn sq ft of space.

Beyond leasing, Smartworks earns a small portion of its income from services such as meeting rooms, internet access, parking, electricity, and other client-used amenities.

Smartworks set a price band of INR 387 to INR 407 for its IPO, which comprises a fresh issue of shares of up to INR 445 Cr and an OFS component of up to 33.79 Lakh shares. The bidding will close today, with the company’s shares expected to list on Thursday (July 17).

At the upper end of the price band, Smartworks will be valued at about INR 4,650 Cr (around $540 Mn).