Smartworks Coworking Spaces Ltd has submitted initial documents to the capital markets regulator, SEBI, to raise funds through an IPO. The proposed IPO will include a fresh issue of equity shares worth ₹550 crore and an Offer For Sale (OFS) of 67.59 lakh shares by the promoters, according to the Draft Red Herring Prospectus (DRHP).
The company, based in the city, might raise ₹110 crore through a pre-IPO placement. If this placement occurs, the amount will be deducted from the fresh issue size.
From the fresh issue, ₹282.30 crore will be allocated to capital expenditure for fitting out new centres and for security deposits for these centres. Additionally, ₹140 crore will go towards repaying loans, and the remaining funds will be used for general corporate purposes.
Smartworks Coworking Spaces Ltd is a leading platform that provides office experiences and managed campuses.
The company specializes in leasing large, bare-shell properties in prime areas and converting them into fully serviced, tech-enabled campuses with modern amenities.
These campuses feature cafeterias, sports zones, gyms, crèches, medical centres, and more, creating a modern and appealing work environment. The company serves businesses of all sizes, especially mid-to-large companies requiring over 300 seats.
Smartworks focuses on cities like Bengaluru, the Mumbai Metropolitan Region, Hyderabad, Gurugram, and Chennai.
As of March 31, 2024, India’s commercial office space was about 841.2 million square feet and is projected to grow at an annual rate of 6.71% to reach 1,079.3 million square feet by the end of 2027, according to the draft papers.
Flexible workspaces have become a crucial part of modern work culture, accommodating different working styles and adding flexibility to the office market.
JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd, and Kotak Mahindra Capital Company Ltd are managing the company’s IPO process.
