The company made a quiet in-line to positive debut on the stock market. The company has posted growth in its top lines with cash EBITDA at gross levels. Its thrust on MNC customers with long-term contracts has yielded desired benefits, said Shivani Nyati of Swastika Investmart.
Nyati advised knowledgeable investors to park modest sums of money for the medium to long term, while others might take profits.The IPO garnered strong investor interest across categories and was subscribed 13.92 times at close.
Smartworks Coworking Spaces had revised its IPO size downward. The fresh issue was reduced to ₹445 crore from the earlier planned ₹550 crore, while the offer for sale (OFS) by promoters has been cut to 33.79 lakh shares from 67.59 lakh shares.
Neetish Sarda, Harsh Binani, Saumya Binani, NS Niketan LLP, SNS Infrareality LLP and Aryadeep Realstates Private Limited are the promoters of the company.
Post IPO, the promoter holding will decline from 65% to 59%.
Marquee investors in the company include family offices of Ananta Capital, Hexaware, Enam group, Deutsche Bank who owns 1% stake in the company.
Madhu Kela was an angel investor who invested in 2017.Ahead of the issue launch, the company has raised ₹173.6 crore from institutional investors, including Tata Mutual Fund, Axis New Opportunities AIF, Aditya Birla Sun Life Insurance Company, Baroda BNP Paribas Mutual Fund, Sageone, SBI General Insurance Company, Trust Mutual Fund, BNP Paribas, and Societe Generale.
Nearly ₹226 crore from the total proceeds will be utilised for capital expenditure related to the fit-outs in new centres and security deposits for these new centres, ₹114 crore will be allocated for the payment of loans, and the remaining funds will be utilised for general corporate purposes.
Smartworks Coworking Spaces is engaged in the business of customised managed workspace solutions, offering fully serviced, tech-enabled office environments with aesthetic designs and essential amenities to meet the specific needs of enterprises and their employees.
It specialises in leasing large, bare-shell properties in prime locations and transforming them into fully serviced, tech-enabled campuses with modern amenities.
These campuses include cafeterias, sports zones, gyms, medical centres, and more, offering a modern and attractive work environment. The company cater to businesses of all sizes, with a focus on mid-to-large companies that need over 300 seats.
The company is concentrated in various cities, including Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram and Chennai.
Between FY23 and FY25, Smartworks expanded its operations by adding 2.83 million square feet of space under management, achieving a CAGR (compound annual growth rate) of 20.80%.
Adjusted EBITDA has grown by more than 3.5X times from about ₹36 crore to about ₹172 crore versus in FY25 from FY23.
Net debt stands at about ₹300 crore.
JM Financial was the book-running lead manager of the Smartworks Coworking IPO, while MUFG Intime India (Link Intime) was the registrar for the issue.
