Smartworks Coworking Spaces files draft papers with SEBI to raise ₹550 crore via IPO

Furnished workspace provider Smartworks Coworking Spaces Ltd has filed draft papers with the market regulator, the Securities and Exchange Board of India (SEBI), to raise funds via IPO.

According to the Draft Red Herring Prospectus (DRHP), the proposed initial public offering (IPO) is a mix of fresh issuance of shares aggregating to ₹550 crore and an offer for sale (OFS) component of 67.59 lakh equity shares by promoters.

The company may also consider raising ₹110 crore by means of a pre-IPO placement. If such a placement occurs, the amount raised will be subtracted from the total fresh issue size.

The IPO proceeds will be used for capital expenditure in relation to the fit-outs in new centres, security deposits for these new centres, loan repayments and general corporate purposes.

About Smartworks Coworking Spaces

Smartworks Coworking Spaces Limited is among the leading platforms for office experiences and managed campuses.

It specialises in leasing large, bare-shell properties in prime locations and converting them into fully serviced, tech-enabled campuses with the latest amenities.

These campuses include sports zones, cafeterias, medical centres, gyms and more, offering a modern and attractive work environment. The company caters to businesses of all sizes, focusing on mid-to-large companies that need more than 300 seats.

The company is concentrated in cities such as the Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, and Gurugram.

As of March 31, 2024, India's commercial office space was about 841.2 million square feet, and according to the draft papers, it is expected to grow at an annual rate of 6.71% to 1,079.3 million square feet by the end of 2027.

BOB Capital Markets Ltd, IIFL Securities Ltd, Kotak Mahindra Capital Company Ltd and JM Financial Ltd are book-running managers for the issue.