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Blogs / IPO Note / Smartworks Coworking Spaces Limited IPO – Detailed Analysis & Long-Term Investment View
By Sushil Finance
10 July 2025 • 8 MINUTES READ
Smartworks Coworking Spaces

Smartworks Coworking Spaces Limited IPO – Detailed Analysis & Long-Term Investment View

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IPO Details

Issue Opening Date: July 10, 2025
Issue Closing Date: July 14, 2025
Issue Size: ₹ 582.56 Cr (@ upper price band of ₹407)
Fresh Issue: ₹ 445 Cr
OFS: ₹ 137.56 Cr
Price Band: ₹ 387 to ₹407 per Equity Share
Lot Size: 36 Shares & multiples thereafter
Minimum Application Amount: ₹ 14,652 (61 Shares)
Maximum Application Amount: ₹ 1,90,476 (468 Shares)
Big HNI: ₹ 10,10,988 (2,484 Shares)

Our View: Long Term Subscribe for High Risk Investors


Company Overview

Smartworks Coworking Spaces is an office experience and managed campus platform, operating 8.99 million sq. ft. of Super Built-up Area (SBA) as of March 31, 2025. The company primarily targets mid-to-large enterprises, offering modern workspaces with premium designs, integrated proprietary technology, and amenities such as cafeterias, sports zones, convenience stores, gyms, crèches, and medical centres.

The company serves a wide clientele including Google IT Services India Pvt. Ltd., L&T Technology Services Ltd., Bridgestone India Pvt. Ltd., Groww, MakeMyTrip (India), and many more. As of June 30, 2025, Smartworks had 728 clients and 169,541 seats, catering to team sizes ranging from less than 50 to over 6,300 seats, with a focus on 300+ seat enterprise clients.


Key Highlights

Market leader in flexible office space for large enterprises.
Ability to lease and transform large properties into amenity-rich ‘Smartworks’ branded campuses.
Focus on enterprise clients with high seat requirements and emerging mid-to-large enterprises.
Strong execution backed by cost efficiency, process optimisation, and technology integration.
Risk-mitigating strategies fostering financial stability.

Objects of the Issue

Repayment/prepayment/redemption of certain borrowings – ₹114 Cr.
Capital expenditure for fit-outs and security deposits for new centres – ₹225.84 Cr.
General corporate purposes.
Offer for Sale of 33,79,740 equity shares (proceeds go to selling shareholders).

Our View

Smartworks employs a “managed campus” model, ideal for enterprises seeking fully managed office solutions without owning real estate. Its business rests on four pillars: asset-light scalability, enterprise revenue lock-ins, integrated service monetization, and operational tech leverage.

Between FY23–FY25, SBA grew at a CAGR of 20.80%, and revenue from operations grew at a CAGR of 38.98%. Serving a mix of large enterprises, SMBs, and startups reduces client concentration risk.

Risks: Competition, consistent losses over 3 years, reliance on commercial real estate, lease renewal risks, revenue concentration (~75% from top 4 cities), weaker negotiating power with large clients, and high debt (Debt-to-Equity ratio of 2.9x as of FY25).

Financials: FY23–FY25 CAGR – Revenue: 39%, EBITDA: 42%. FY25 EBITDA margin: 62%, ROCE: 42.3%. High P/BV (38.58) and stretched valuations compared to industry peers, with negative EPS.


Conclusion: Suitable for high-risk investors with a long-term horizon, provided the company achieves consistent profitability.


Brief Financials

PARTICULARS ₹ in Million
FY ‘25 FY ’24 FY ‘23
Total Income 14,096.69 11,131.10 7,440.70
Total Expenditure 14,891.28 11,807.32 8,802.96
EBITDA 8,572.64 6,596.70 4,239.98
Profit before Tax (794.59) (676.22) (1,362.26)
Profit after Tax (631.79) (499.57) (1,010.46)
E.P.S. (Diluted) (6.18) (5.18) (10.57)
P/E (x) (Diluted) - - -
RONW (%) (58.76) (99.90) (321.13)

PRICE CHART (@ ₹ 407) (Retail Category)

LOT SIZE
Amount
36 14,652
72 29,304
108 43,956
144 58,608
180 73,260
216 87,912
252 102,564
288 117,216
324 131,868
360 146,520
396 161,172
432 175,824
468 190,476

HNI Payment Chart

Category
No. of Shares Minimum Bid Lot Amount (Rs.)
Small HNI 504 205,128
Big HNI 2,484 1,010,988

Indicative Time Table

Tentative Events
Indicative Dates
Finalisation of Basis of Allotment with the Designated Stock Exchange 15/7/2025
Initiation of refunds/unblocking ASBA Fund 16/7/2025
Credit of Equity Shares to demat accounts of Allottees 16/7/2025
Commencement of trading of the Equity Shares on the Stock Exchanges 17/7/2025




Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.


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