Smartworks IPO To Open On July 10, Issue Size Reduced

Smartworks IPO To Open On Thursday, Issue Size Reduced

SUMMARY

Smartworks Coworking Spaces has filed its RHP with the Securities and Exchange Board of India eight months after getting markets regulator's nod for its IPO

The managed and flexible workspaces provider's public issue will open on July 10 (Thursday) and close on July 14 (Monday). Anchor investor bidding will take place on July 9 (Wednesday).

The size of the fresh issue has been reduced to INR 445 Cr from INR 550 Cr in the DRHP. The OFS component has almost been halved to up to 33.79 Lakh shares from 67.59 Lakh shares earlier

Nearly eight months after getting markets regulator SEBI’s nod for its IPO, Smartworks Coworking Spaces has filed its RHP.

The managed and flexible workspaces provider has cut the size of its public issue, which will open on July 10 (Thursday) and close on July 14 (Monday). Anchor investor bidding will take place on July 9 (Wednesday).

As per the RHP, the size of the fresh issue has been reduced to INR 445 Cr from INR 550 Cr in the DRHP. The OFS component has almost been halved to up to 33.79 Lakh shares from 67.59 Lakh shares earlier.

Promoters NS Niketan LLP and SNS Infrarealty LLP will sell their shares via the OFS. Existing investor Space Solution India Pte Ltd will also pare its stake.

In its DRHP, the company had said that it planned to raise INR 110 Cr via a pre-IPO placement. However, Smartworks said in the RHP that no pre-IPO placement was undertaken.

Founded in 2016 by Neetish Sarda and Harsh Binani, Smartwork offers customised managed workplace solutions to enterprises. The coworking startup claims to offer fully serviced tech-enabled office environments, coupled with daily life and aspirational amenities for employees.

The Delhi NCR-based startup also offers an integrated application which offers client SPOC portal, facial recognition access, digitised meeting room and conference room booking system. Besides, employees can also order food, get smart access to amenities like gym, creche and game room through the app.

Smartworks has a footprint of 9 Mn sq ft and is present in 13 cities and manages 50 centres. It also has two centres in Singapore.

It will deploy the capital raised from the fresh issue as follows:

Repayment Of Borrowings: Smartworks intends to use INR 114 Cr for paying off term loans, working capital credit and non-convertable bonds which it has borrowed from banks and various financial institutions. As of April 30, 2025, the startup’s total outstanding borrowings stood at INR 381.96 Cr.

Capital Investment For Fit-Outs: It will deploy INR 225.84 Cr to establish fit-outs in its new centres. Fit-outs refers to the process of customising the interior space making it suitable for occupation.

General Corporate Purposes: The startup will deploy INR 110 Cr for general corporate purposes expenses approved by their management, including growth opportunities and acquisitions, marketing and brand building, funding working capital requirements and investment in subsidiaries.

On the financial front, Smartworks’ consolidated operating revenue rose over 32% to INR 1,374.05 Cr in FY25 from INR 1,039.36 Cr in the previous fiscal year. Despite this, its net loss increased 26.5% to INR 63.17 Cr during the year under review from INR 49.95 Cr in FY24.

The development comes at a time when the coworking space is seeing a rush of companies preparing to go public. While Awfis got listed on the bourses last year, Smartworks’ other peers who are looking to go public include WeWork India, IndiQube, DevX and Table Space.