Smartworks Coworking Spaces, India’s leading managed office space provider, saw strong investor interest on the final day of its ₹583 crore IPO on July 14, with the issue being subscribed more than 3 times overall. Non-Institutional Investors led the momentum with 5x oversubscription, followed by strong participation from Qualified Institutional Buyers and retail investors. The IPO received mixed sentiment in the grey market with a drop in GMP to around 5%, down from the earlier 8%.
Smartworks Coworking Spaces, a leading Indian managed office space provider, saw its ₹583 crore initial public offering (IPO) receive robust investor interest on its final day of bidding. Based in Gurugram, Haryana, Smartworks provides flexible office space solutions across 15 Indian cities. The IPO closed on July 14 with the issue being subscribed over 3.28 times against the offer size of 1.04 crore shares.
According to data on the NSE, the strongest demand came from Non-Institutional Investors (NIIs), who oversubscribed their portion 5.2 times. Qualified Institutional Buyers (QIBs) booked 4x their quota, while retail investors subscribed 1.9x of their allotted shares.
The company had launched the IPO at a price band of ₹387–₹407 per share. The issue included a fresh equity sale worth ₹445 crore and an offer-for-sale of ₹137.56 crore by existing shareholders. Investors were required to bid for a minimum of 36 shares, amounting to ₹14,652 at the upper band.
However, the Grey Market Premium (GMP) fell to nearly 5% on the last day of bidding. According to data from Investorgain, the unlisted shares were trading at ₹427 apiece, showing a drop from earlier levels of an 8% premium before the IPO opened. The listing is expected on July 17.
In the anchor round held on July 9, the company raised ₹173.6 crore from 12 institutional investors. Participants included Tata Mutual Fund, Aditya Birla Sun Life Insurance, SBI General Insurance, Baroda BNP Paribas Mutual Fund, and Societe Generale, among others.
According to the company’s filing with BSE, the funds raised will be used to repay ₹114 crore in debt, allocate ₹225.8 crore for fit-outs in new centres, and provide security deposits for new locations, with the rest marked for general corporate purposes.
Brokerages including Anand Rathi, Deven Choksey, and Geojit Financial Services have recommended a ‘Subscribe’ rating, citing the company’s asset-light model, growing revenue streams, and expanding footprint. However, analysts from Lemonn Markets have flagged concerns about its fixed lease model, high client concentration, and lack of profitability, advising a cautious wait-and-watch strategy post-listing.
Smartworks operates 50 centres with a total SBA of 8.99 million square feet. Competing with listed peers like Awfis, the company’s long-term trajectory will depend on its ability to achieve profitability and sustain growth in the evolving flexible workspace segment.