Smartworks IPO Day 3: Subscribed 13x; GMP, status & key details inside

The initial public offering (IPO) of Smartworks Coworking concluded on Monday, July 14, with a strong response, particularly from qualified institutional buyers (QIBs). The IPO was subscribed 13.45 times overall, reflecting healthy investor interest.

Subscription Status Breakdown:

Retail investors: 3.53 times

Non-Institutional Investors (NII): 22.78 times

Qualified Institutional Buyers (QIBs): 24.41 times

Employee quota: 2.38 times

Following the closure, investor attention will now shift to the allotment of shares, which is scheduled for July 15, 2025. Allotment status can be checked on the BSE and NSE websites.

Grey Market Premium (GMP):

On the IPO’s closing day, the GMP stood at ₹14—a drop of ₹6 from the previous day. Based on this, Smartworks shares could list at ₹421, a 3.44% premium over the issue price. However, GMPs are volatile and should not be the sole basis for investment decisions. It's crucial to consider company fundamentals and personal risk appetite.

IPO Details:

Smartworks, India’s largest managed campus operator, aimed to raise ₹582.6 crore through its IPO.

Fresh issue: ₹455 crore

Offer for Sale (OFS): ₹137.6 crore

Price Band: ₹387–₹407 per share

Lot size: 36 shares (₹14,652 minimum investment at upper band)

Use of Funds:

The IPO proceeds will be allocated toward:

Pre-payment of selected borrowings

Capital expenditure for new centre fit-outs

Security deposits for new centres

General corporate purposes

Financial Highlights:

Revenue Growth (FY23–FY25): From ₹711 crore to ₹1,374 crore (CAGR of 38.9%)

EBITDA: Increased from ₹424 crore to ₹857 crore

Despite positive operating cash flows, the company has incurred losses at the PAT level due to high depreciation and non-cash expenses.

Net debt: ₹299 crore

Smartworks’ rapid expansion and consistent demand from enterprise clients continue to strengthen its market position in India’s growing co-working space sector.