Smartworks Coworking Spaces IPO Opens: Is This Investment Space Worth Booking?
India’s office space is changing. More companies now prefer flexible, shared offices instead of traditional ones. That’s the gap Smartworks coworking spaces IPO is trying to fill. It’s one of India’s biggest managed office space providers. And right now, it’s making headlines because its IPO just opened for subscription.
Smartworks’ IPO is open for subscription from July 10 to July 14. The share price ranges between ₹387 and ₹407. The company plans to raise about ₹585 crore. But is it worth investing?
Let’s explore who Smartworks is, how strong their business really is, and what their financials say. We’ll look at their growth potential, compare them with competitors, and check what market experts think.
Who is Smartworks & Why It Matters?
Smartworks coworking spaces IPO started in 2015 and is backed by founders Neetish Sarda and Harsh Binani. They have grown fast now, managing nearly 9 million sq ft across 50 centres in 15 Indian cities, with two centres in Singapore.
They focus on mid-to-large enterprises, including MNCs and Global Capability Centers. These clients like Smartworks because they offer plug‑and‑play workspaces with cafeterias, gyms, and tech support.
The Money Story: Financial Snapshot (FY23-FY25)
Smartworks has seen strong growth:
- Revenue nearly doubled from ₹711 cr (FY23) to ₹1,374 cr (FY25), ~39% CAGR.
- Adjusted EBITDA soared from ₹36 cr to ₹172 cr, about 117% CAGR, making a strong 62% margin.
Still, the company remains loss‑making due to heavy depreciation, high finance costs, and lease accounting. They reported a ₹63 cr net loss in FY25. Their net debt is about ₹299 cr; after the IPO, net‑debt‑to‑equity drops to ~0.5 from 0.8.
IPO Details & Use of Funds
Smartworks coworking spaces IPO is raising ₹583 cr:
- ₹445 cr from fresh issue
- ₹138 cr from promoters and existing shareholders via OFS.
IPO proceeds breakdown:
- ₹114 cr for debt repayment
- ₹225-226 cr for fit-outs and new centre deposits
- Balance for general corporate use.
Promoter stake will fall from ~65% to ~58% post‑IPO.
How the Market Reacted So Far?
Day 1 bids show mixed response:
- Issue subscribed 23% by midday; 23.8% overall.
- Retail investors at ~30-46%, NIIs ~37%, employees ~32%, but institutional investors (QIBs) have held back.
Yet, the grey market premium (GMP) is upbeat at ₹29‑₹33 (~7-8%), showing optimism about listing gains. Listing is expected on July 17, with allotment on July 15.
Valuation & Peer Comparison
At the upper band (₹407), Smartworks is valued at:
- EV/EBITDA ≈ 9.3× (cheaper than Awfis at ~12.9×).
- P/S ≈ 3.3× vs Awfis at ~3.7×.
- P/B ≈ 8.4×, while Awfis is ~10×.
Despite being loss‑making, Smartworks offers a more cost‑effective entry than its listed peer.
What’s Driving the Opportunity?
The flexible workspace market in India is booming:
- Estimated 85 million sq ft in 2025; projected to reach ~140-144 mln by 2027.
- Growth fueled by hybrid work, rising GCCs, and enterprise demand for cost-efficient workspaces.
Smartworks is poised to benefit. They offer lower fit‑out costs (about 50% less than peers), operate a mostly asset-light model, and boast highly efficient operations.
Risks & Challenges Ahead
We see several concerns:
- Net losses continue due to high depreciation and finance costs.
- Geographic concentration: ~75% of revenue from Pune, Bengaluru, Hyderabad, and Mumbai.
- Intense competition: over 500+ players nationwide.
- Vulnerability to real estate cycles and client churn.
These factors could affect profits and growth if not managed well.
What Analysts are Saying?
- Bullish views: Many say to subscribe for the long term, thanks to efficient operations and attractive valuation.
- Cautious warnings:
- Some highlight continued losses and leveraged balance sheets.
- Risks of geographic concentration and dependence on the new centre of execution.
Should We Book or Wait?
Here’s our take:
| Pros | Cons |
| Strong growth and profitability efficiency. | Still loss‑making. |
| Cheaper valuation than peer. | Heavy leverage and debt. |
| Upbeat grey market sentiments (~8% potential listing gains). | Market concentration and stiff competition. |
| Rising demand for shared offices boosts future growth. | Execution risk in new centres. |
If we’re long‑term believers in flex work and can handle some risk, this IPO could be a smart bet. But if we want strong profits now, it might be wise to wait for clearer financials post-listing.
Bottom Line
The Smartworks coworking spaces IPO brings solid growth, strategic positioning, and cheaper valuation. Yet, net losses, rising debt, and reliance on metro markets add risk. For risk-tolerant, long-term investors, this is worth booking. Conservative investors may prefer to watch performance unfold after listing.
Frequently Asked Questions (FAQs)
Smartworks still makes a net loss. In FY25, it lost around ₹63 crore. Though its operations are strong, the company hasn’t shown a net profit yet.
Yes. The IPO was approved by SEBI in December 2024. It officially opened for public subscription on July 10, 2025.
Yes. Smartworks is moving to become a publicly traded company by launching its IPO. If things go well, it will list on July 17, 2025.
The IPO is about ₹582-583 crore in size. This includes ₹445 crore fresh issue and ₹137-138 crore offer-for-sale.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.