Smartworks Coworking Spaces’ IPO closed with an oversubscription of 13.45 times, led by strong institutional interest. The ₹583 crore issue, now in allotment stage, saw muted retail participation. Despite losses, the flex workspace provider posted a 32% revenue growth in FY25, signalling confidence in India’s booming flexible office market.
Smartworks Coworking Spaces Ltd, one of India’s major flex space operators, concluded its ₹583 crore IPO on July 14, with robust demand from institutional investors, despite moderate retail interest. The public issue, comprising a mix of fresh shares and an Offer for Sale (OFS), was subscribed 13.45 times overall, with QIBs oversubscribing by 24.41 times and non-institutional investors by 22.73 times.
Retail participation was lower in comparison, with a subscription of 3.53 times, but analysts suggest this isn’t unusual for a sector where long-term growth potential often outweighs short-term profits. The allotment of shares is expected to be finalised today, July 15, and investors can check their status via the MUFG Intime India registrar’s website or BSE’s IPO portal.
The grey market premium (GMP) stands at ₹16, indicating a potential listing price of ₹423 per share, about 3.93% above the issue price. While GMPs are unofficial, they often reflect investor sentiment around upcoming listings.
Ahead of its IPO, Smartworks raised ₹173.64 crore from anchor investors, highlighting confidence in the company’s future amid India’s growing coworking and managed office sector. The IPO’s fresh issue component was revised to ₹445 crore, down from ₹550 crore, while the OFS was reduced to 33.79 lakh shares.
Of the total proceeds, Smartworks plans to deploy ₹226 crore towards fit-outs and deposits for new centres, ₹114 crore to repay loans, and the remaining funds for general corporate purposes. The promoter group will receive funds raised from the OFS.
Smartworks reported a net loss of ₹63.17 crore in FY25, widening slightly from ₹49.95 crore the previous year, citing expenses outpacing income. However, operational performance showed promise. Revenue grew to ₹1,374.05 crore in FY25, up from ₹1,039.36 crore in FY24—a 32% increase year-on-year.
“These losses were on account of our total income being lower than the expenses for the relevant fiscal,” the company noted in its red herring prospectus. Despite the red ink, analysts view Smartworks as well-positioned in India’s evolving workspace ecosystem, especially as hybrid and flexible office models gain traction.
Once listed, Smartworks will join its peers, WeWork India, Awfis, and The Executive Centre, in the public arena, adding depth to India’s fast-maturing flexible workspace market. With enterprise-grade offerings and a growing national footprint, Smartworks’ listing marks another milestone in the transformation of commercial real estate in India.
