Smartworks Coworking IPO set to debut today. GMP signals mild listing gains

Synopsis

Smartworks Coworking Spaces is set to debut on the stock market on July 17, with an IPO price fixed at Rs 407 per share. Subscribed 13.92 times overall, the IPO sees a grey market premium of around 7%. Despite ongoing losses, the company boasts strong operating performance and aims to use IPO proceeds for debt repayment and expansion.

Smartworks Coworking Spaces is all set to make its stock market debut on July 17 with shares to be listed on both NSE and BSE. The IPO, which garnered strong investor interest across categories and was subscribed 13.92 times overall, is commanding a grey market premium (GMP) of around 7%, indicating mild optimism around its listing performance.

The company had fixed its IPO price at Rs 407 per share. With the current GMP hovering around Rs 28, the implied listing price is expected to be in the range of Rs 435, suggesting a possible listing pop for investors — albeit modest.

The Rs 583 crore IPO consisted of a fresh issue worth Rs 445 crore and an offer for sale (OFS) component of Rs 138 crore. Investors responded strongly, with the QIB portion subscribed 24.92 times, NII 23.68 times, and retail 3.69 times. The employee quota saw a relatively lower subscription at 2.51 times.

Smartworks is one of India’s largest providers of managed office spaces for enterprises, offering fully serviced, tech-enabled office environments.

The company caters to large corporates and MNCs and operates premium campuses across major Indian cities. As of March 2025, it had over 1.69 lakh seats under management and a growing client base of more than 700 companies.

Despite its scale, Smartworks continues to report losses, with a net loss of Rs 63 crore in FY25, compared to Rs 50 crore in the previous fiscal. However, its operating performance remains strong, with EBITDA rising 30% year-on-year to Rs 857 crore in FY25.

The IPO proceeds will be used primarily for debt repayment and capital expenditure on fit-outs for new centres. With high client retention, a robust B2B model, and capital-light operations, the company aims to strengthen its market leadership in the enterprise workspace segment.

While valuations remain steep and risks tied to ongoing losses persist, the muted GMP suggests tempered but positive sentiment ahead of listing.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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