Smartworks Coworking IPO Day 3: The IPO of Smartworks Coworking closed on Monday, July 14, after a good response from investors. The public issue stayed open for four days, starting July 10, and ended with high subscription numbers, mainly because big institutional investors showed strong interest. the IPO allotment is set for July 15, 2025. Investors can check if they got shares by visiting the BSE or NSE website.
Smartworks is already well known as India’s biggest managed campus operator, and this IPO gave investors a chance to own a part of it. The company aimed to raise ₹582.6 crore through this IPO. This included a fresh issue of ₹455 crore and an offer for sale worth ₹137.6 crore, reported Mint.
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tThe price band for the shares was set between ₹387 and ₹407. Anyone applying had to bid for at least 36 shares, and the cost for retail investors at the highest price was ₹14,652. The money raised will be used to repay some loans, do fit-outs at new coworking centres, pay security deposits for new centres, and take care of other business needs.
IPO Subscription Numbers
On the final day, the IPO was subscribed 13.45 times in total. That means people wanted more shares than were available. The retail part got 3.53 times more applications than the shares offered. Non-institutional investors showed strong interest and applied 22.78 times more. The biggest push came from qualified institutional buyers who applied 24.41 times the available shares. Even the employee quota saw decent interest, getting subscribed 2.38 times.
Even though the IPO did well, the grey market premium (GMP) dropped on the last day. It went down by ₹6 and stood at ₹14. This means that based on the GMP, Smartworks shares might list at around ₹421, which is just 3.44% higher than the upper IPO price of ₹407. But it’s important to remember that GMP changes every day and shouldn’t be the only thing people look at while investing. Everyone should also check the company’s actual performance and take their own risk capacity into account.
Company Performance
Smartworks has grown fast in recent years. The company’s revenue went up a lot between FY23 and FY25, jumping from ₹711 crore to ₹1,374 crore. That’s a growth rate of almost 39%. This happened because the company kept opening more office spaces and got more business from large companies. Its EBITDA also saw a big jump from ₹424 crore to ₹857 crore in the same time.
But even though its business is growing, the company is still reporting losses at the profit-after-tax level. That’s mostly because of big depreciation costs and other accounting items that don’t involve real cash. However, Smartworks has been generating good operating cash flows and is managing its day-to-day finances well. The company has ₹299 crore in net debt.
