Smartworks Coworking Spaces has secured ₹173.64 crore from anchor investors ahead of its upcoming IPO. In a regulatory filing on Wednesday, the company confirmed the allocation of 42,66,378 equity shares at ₹407 per share to anchor investors.
Among the allocations, 32.04% went to three domestic mutual funds—Tata Mutual Fund, Baroda BNP Paribas Mutual Fund, and Trust Mutual Fund—through four different schemes. Other notable investors include Axis New Opportunities AIF – Series II, SBI General Insurance, Aditya Birla Sun Life Insurance, Buoyant Opportunities Strategy II, and Societe Generale.
The Gurugram-based managed office space provider will open its IPO on July 10, aiming to raise around ₹600 crore to support business expansion and debt reduction. The IPO will close on July 14.
Smartworks has set a price band of ₹387–407 per share. Smartworks has reduced the fresh issue size to ₹445 crore from the earlier planned ₹550 crore. Likewise, the promoters have cut the Offer For Sale (OFS) to 33.79 lakh shares from 67.59 lakh.
Currently, Smartworks operates 48 co-working centres across India, offering over 1.9 lakh seats.
At the upper end of the price band, Smartworks estimates its IPO size at approximately ₹583 crore, bringing its market capitalization to around ₹4,645 crore.
From the fresh issue proceeds, ₹226 crore will be allocated toward capital expenditure for setting up interiors and security deposits at upcoming centres. Another ₹114 crore will be used to repay outstanding loans, while the balance will support general corporate needs. Proceeds from the Offer for Sale (OFS) will go to the promoters.
Financially, the company reported a net loss of ₹63.17 crore in FY 2024-25, attributed to higher operational costs outpacing income. This is wider than the ₹49.95 crore loss recorded in FY 2023-24. Despite the losses, Smartworks saw a notable jump in operational revenue, which increased from ₹1,039.36 crore in FY 2023-24 to ₹1,374.05 crore in FY 2024-25.
“These losses were on account of our total income being lower than the expenses for the relevant fiscal,” the company said in its red herring prospectus (RHP) filed with Sebi.
Smartworks plans to enhance revenue and reduce proportionate expenses in a bid to move toward profitability.
As of the end of April, the company’s total consolidated debt stood at ₹382 crore.
Smartworks operates on a lease-based model—renting office spaces from landlords and then sub-leasing them to corporate clients. Its active portfolio spans 8.31 million square feet, with an additional 0.7 million square feet currently undergoing fit-outs.
Furthermore, the company has leased another 1.7 million square feet of space but is yet to take possession for setting up new centres.
