Smartworks Coworking IPO: Issue fully subscribed on day 2, NIIs portion takes lead; check category-wise status

According to NSE data till 5 PM, the issue was subscribed 1.15 times, with total bids received for 11,996,496 shares against the offered 10,401,828 shares.

The portion reserved for the non-institutional investors (NIIs) was subscribed 1.79 times, while the retail investors and qualified institutional buyers (QIBs) portions were subscribed 1.18 times and 0.63 times, respectively.

The IPO is a mix of a fresh issuance of ₹445 crore and an offer for the sale of 0.34 crore shares aggregating to ₹137.56 crore. The total issue size is ₹582.56 crore.

The company is seeking to raise ₹582.56 crore via a fresh issuance of shares valued at ₹445 crore as well as an offer for sale (OFS) of ₹137.56 crore.

The money generated will be used for capital expenditure requirements towards fit-outs in new centres and security deposits, reducing debt, and general corporate purposes. The OFS proceeds will go to promoters.

On Wednesday, the company mobilised ₹173.64 crore from anchor investors, including Tata Mutual Fund, Trust Mutual Fund, Baroda BNP Paribas, Axis New Opportunities AIF - Series II, Aditya Birla Sun Life Insurance Company Ltd., SBI General Insurance Company Ltd., Societe Generale, and Buoyant Opportunities Strategy II, among others.

The firm allocated 4,266,378 shares to anchor investors at ₹407 per share.

Smartworks will utilise ₹226 crore for capital expenditure needs, ₹114 crore for loan repayments, and the remaining funds for general corporate purposes. Under the OFS, NS Niketan LLP, SNS Infrarealty LLP, and Space Solutions India Pte Ltd (formerly Lisbrine Pte Limited) will sell their stake.

The company takes office spaces on lease from landlords and then subleases them to corporates. It focuses on mid-to-large enterprises, which include Indian corporates and multinational companies (MNCs).

Smartworks subleases office spaces to corporates in major cities like Mumbai, Pune, Bengaluru, Gurugram, Hyderabad, Chennai, and Noida. Its key clients include L&T Technology Services, Google IT Services India Pvt Ltd, Philips Global Business Services LLP, and Bridgestone India Pvt Ltd, among others.

According to investorgain.com, the unlisted shares of Smartworks Coworking Spaces are trading at ₹432 per share, reflecting a grey market premium (GMP) of 6.14% or ₹25 over ₹407, which is the upper price band.