New Delhi, July 10, 2025 — Smartworks Coworking Spaces Limited has opened its Initial Public Offering (IPO), aiming to raise ₹583 crore through a combination of fresh issue and offer for sale. The IPO has caught the attention of both institutional and retail investors amid rising interest in the flexible workspace segment.

---

📌 IPO Snapshot

• Issue Price Band: ₹387–₹407 per share

• Total Raise: ₹583 crore (₹445 crore fresh issue, ₹138 crore OFS)

• Listing Date: Expected July 17, 2025

• Grey Market Premium (GMP): ₹29–₹33

---

📊 Company Financials

Smartworks has demonstrated rapid financial growth over the past two years:

• Revenue: Rose from ₹711 crore in FY23 to ₹1,374 crore in FY25

• EBITDA: Increased from ₹36 crore to ₹172 crore during the same period

• Profitability: Still operating at a net loss (~₹63 crore in FY25), although losses have narrowed

• Net Debt: ~₹299 crore, with improved leverage post-IPO

Also Check

---

✅ Strengths

• Enterprise-Focused Business Model: Over 60% of revenue comes from large clients with long-term contracts and high seat volumes

• Pan-India Presence: Operates 50 centers covering ~9 million sq ft, with additional capacity under development

• Efficient Cost Structure: Fit-out costs are among the lowest in the sector, boosting margin potential

• Valuation: Competitive pricing compared to listed peers, offering entry into a high-growth sector

---

⚠️ Risks

• No Profit Yet: The company has yet to post a net profit, with negative return on equity

• High Geographic Concentration: A significant share of revenue is tied to a few regions, increasing exposure to localized economic shifts

• Operational Dependency: Long-term fixed leases and dependency on a few large clients create financial and execution risks

• Highly Competitive Industry: Expansion requires significant capital and constant innovation amid rising competition

---

🧭 Investor Outlook

The IPO presents an opportunity for investors looking to tap into the growing demand for flexible, enterprise-grade office spaces in India. The business model is sound, with scalable operations and strong client retention. However, the company’s ongoing losses and dependence on regional performance make it more suitable for long-term investors with higher risk tolerance.

---

📌 Conclusion

Smartworks’ IPO offers a bold bet on the future of workspace management in India. While financials are trending positively, the journey to profitability remains key. Investors should assess their risk appetite and investment horizon before subscribing.