Smartworks IPO: Price Band Set At INR 387-407

Coworking company Smartworks has set a price band of INR 387 to INR 407 per share for its initial public offering (IPO) that will open for subscription on July 10 and close on July 14.

At the upper end of the price band, Smartworks will be valued at about INR 4,650 Cr (around $540 Mn)

Smartworks’ IPO will comprise a fresh issue of up to INR 445 Cr and an OFS component of up to 33.79 Lakh shares. The company filed its RHP last week and reduced the size of the fresh issue and OFS from INR 550 Cr and 67.59 Lakh shares, respectively, mentioned in its DRHP.

The company has reserved equity shares worth INR 3.75 Cr for its employees and will offer them a discount of INR 37 per share.

The issue will open for anchor investor bidding on July 9.

Promoters NS Niketan LLP and SNS Infrarealty LLP will sell their shares via the OFS. Existing investor Space Solution India Pte Ltd will also pare its stake.

Smartworks Eyes Profitability

As per the RHP, the company’s net loss rose 26.5% to INR 63.2 Cr in FY25 from INR 49.9 Cr in FY24. Its operating revenue grew 32% YoY to INR 1372 Cr during the year from INR 1,039.36 Cr in FY24.

In a pre-IPO conference, Smartworks’ management said that the company is looking to breakeven at the unit-building level in the next 12 months.

Founded in 2016 by Neetish Sarda and Harsh Binani, Smartworks is a coworking startup based out of Gurugram. It leases large buildings from landlords, converts them into campuses, and then rents them out to large enterprises. It maintains an average lease tenure of 48 months and currently manages 10 Mn sq ft of space.

Beyond leasing, Smartworks earns a small portion of its income from services such as meeting rooms, internet access, parking, electricity, and other client-used amenities.

In FY25, it generated 87% of its revenue from enterprises. Notably, 75.2% of its rental income in FY25 came from centres located in Pune, Bengaluru, Hyderabad, and Mumbai.

Backed by this model, Smartworks’ rental income has grown consistently over the years from INR 687.5 Cr in FY23 to INR 997.1 Cr in FY24 and INR 1,289.3 Cr in FY25.

On the cut in the IPO size, the company said that Keppel Real Estate Services Pte, which held a 19% stake pre-IPO, decided to reduce the number of shares it planned to sell. As a result, Keppel will now retain a 15% stake post-listing.

Taking a cue from this move, the promoters also chose to scale down their OFS portion.

Coworking Startups Rush For IPO

It is pertinent to note that a number of working space providers in India are looking to go public in the next few months. While IndiQube and DevX have filed their DRHPs, SEBI has put WeWork India’s draft papers in abeyance. Meanwhile, Awfis went public last year.

Awfis’ IPO was of INR 598.93 Cr, comprising a fresh issue of INR 128 Cr and OFS of INR 470.93 Cr. Shares of Awfis made their debut on the stock exchanges at a valuation of INR 2,655.8 Cr. Notably, Awfis was also a loss-making entity at the time of going for its IPO.

Behind this IPO boom is India’s coworking office space market, which is estimated to be worth $2.08 Bn in 2025 and projected to grow to $2.91 Bn by 2030.

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