Smartworks Coworking IPO to open on July 10 to raise ₹582.5 crore: Key details investors should know before applying

Smartworks Coworking Spaces, which is engaged in the business of customised managed workspace solutions, offering fully serviced, tech-enabled office environments will launch its ₹582.5 crore initial public offering (IPO) on July 10. The IPO will remain open for subscription till July 14. The IPO is a combination of a fresh issue and an offer-for-sale of a total of 1.43 crore shares.

Incorporated in 2015, Smartworks Coworking Spaces is an office experience and managed campus platform operating in India, with a lease signed portfolio of 8.0 msf as of March 31, 2024.

Smartworks operates 46 operational centres with 183,613 capacity seats, serving 738 clients occupying 152,619 seats, as of March 31, 2025. With a committed occupancy rate of 89.03% as of June 30, 2025.

The company pursues multi-centre (same city) and also multi-city growth opportunities by investing in and nurturing longterm partnerships with its clients. Some of its key clients include Google IT Services India Private Limited, L&T Technology Services Limited, Bridgestone India Private Limited, Philips Global Business Services LLP and others.

Smartworks Coworking IPO details

Smartworks Coworking Spaces IPO aims to raise ₹582.5 crore through its public issue. The IPO is a combination of a fresh issue and offer-for-sale. The fresh issue consists of 1.09 crore shares worth ₹445 crore, while the offer for sale component is of over 33 lakh shares worth ₹137.5 crore.

The company has fixed the price band of the issue at ₹387 to ₹407 per share. The lot size, or the minimum bid quantity to apply for the issue, is 36 shares. This equates to a minimum investment amount of ₹14,652 per lot at the upper end of the price band for retail investors.

Smartworks Coworking Spaces has appointed JM Financial Limited as book-running lead managers of the IPO, while MUFG Intime India Private Limited is the registrar for the issue.

Smartworks Coworking IPO objective

• Capital expenditure (50.7%): The company will use ₹225.84 crore as security deposits and fit-outs for the new centres.
• Repayment of loans (25.6%): ₹114 crore from net IPO proceeds will be used to repay outstanding borrowings
• General corporate purposes (23.7%): Part of the IPO proceeds will be used for general corporate purposes.

Financial snapshot

About the company

Smartworks Coworking Spaces focuses on transforming bare shell properties into fully serviced, aesthetically pleasing, and tech-enabled campuses with daily-life and aspirational amenities, targeting mid-to-large enterprises with requirements of over 300 seats. It specialises in leasing entire or large properties from landlords, particularly passive and non-institutional landlords who own approximately 70.2% of India's total commercial organised stock.

The company operates a total super built-up area of 8.99 msf as of March 31, 2025, spanning 50 centres across 15 cities, including major metropolitan areas like Bengaluru, Pune, Hyderabad, Gurugram, Mumbai, Noida, and Chennai.

The company serves a diverse client base, including Indian corporates, MNCs, and startups across various sectors, including information technology, engineering, insurance, energy, ed-tech, e-commerce, fintech, and consulting. In FY25, enterprise clients contributed 88.49% of total rental revenue at ₹1,134.5 crore. Meanwhile, top five clients contributed 12.5% to overall revenue, while top 10 clients accounted for 18.9% of total revenue.

Smartworks has signed non-binding letters of intent for additional SBA of 1.46 msf across 3 centres and has expanded internationally with two centres in Singapore serving 83 clients. The company has also launched value-added services and fit-out-as-a-service (FaaS) as ancillary businesses that are asset-light and margin-accretive, providing additional monetisation opportunities.

Strengths and opportunities

• Strong market position and growth trajectory: The company has established itself as one of the largest managed campus operators among benchmarked operators, with a lease signed portfolio of 8.0 msf as of FY24. The company operates 50 centres across 15 cities with a total SBA of 8.99 msf and 203,118 capacity seats as of FY25.
• High client retention and long-term contracts: The company maintains strong client relationships with an 86.83% seat retention rate in FY25 and a weighted average total tenure of 46 months, providing revenue predictability and business stability through long-term contractual arrangements with substantial lock-in periods.
• Enterprise client focus: Smartworks has positioned itself as a preferred partner for mid-to-large enterprises, with 63.44% of rental revenue in FY25 coming from clients requiring more than 300 seats, and the largest client deal size exceeding 6,300 seats, demonstrating the company's ability to serve large corporate requirements.

Risks and threats

• Geographic concentration risk: The company derives 75.19% of its rental revenue from just four cities - Pune (32.86%), Bengaluru (23.37%), Hyderabad (11.65%), and Mumbai (7.31%) as of FY25. This heavy concentration makes the company vulnerable to adverse developments in these specific markets.
• Premature termination: The seat retention rate declined from 96.24% in FY23 to 86.83% in FY25 (41,050 seats retained out of 47,278 seats due for retention). Additionally, 19 clients terminated agreements without serving notice periods in FY25, involving ₹66.18 crore in potential claims, compared to 7 clients and ₹6.55 crore in FY24.

Smartworks Coworking IPO: Important dates

Smartworks Coworking Spaces IPO will remain open for bidding from 10 to 14 July. After the bidding is closed, the allotment of shares is expected to be finalised on Tuesday, July 15.

Successful bidders can expect the shares to be credited to their demat accounts by July 16, with others receiving refunds on the same day. Smartworks Coworking Spaces shares are scheduled to list on the BSE and NSE on July 17.