Smartworks Coworking Spaces Files for IPO to Raise Rs 550 Crore

Smartworks Coworking Spaces Ltd has submitted preliminary papers to the Securities and Exchange Board of India to initiate a fundraising campaign through an IPO. The move involves an equity issuance worth Rs 550 crore, with Rs 282.30 crore allocated for capital expenditures and Rs 140 crore for debt repayment.

Smartworks Coworking Spaces Ltd has submitted preliminary papers to the Securities and Exchange Board of India (Sebi) for raising funds through an initial public offering (IPO).

The proposed IPO combines a fresh issuance of equity shares worth Rs 550 crore with an Offer For Sale (OFS) of 67.59 lakh shares by promoters, as detailed in the Draft Red Herring Prospectus (DRHP).

The company, which may consider raising Rs 110 crore through a pre-IPO placement, plans to use Rs 282.30 crore from the fresh issue for capital expenditures on fit-outs in new centres and security deposits, allocate Rs 140 crore for debt repayment, and utilize the remaining funds for general corporate activities.

Smartworks, known for transforming large, bare-shell properties into fully serviced, tech-enabled campuses with modern amenities, caters mainly to mid-to-large companies needing over 300 seats. The company operates in major cities including Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram, and Chennai.

India's commercial office space market is expanding, with projections expecting growth from 841.2 million square feet in 2024 to 1,079.3 million square feet by 2027. Flexible workspaces are increasingly integral to modern work culture, offering varied working styles and flexibility.

JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd, and Kotak Mahindra Capital Company Ltd are managing the IPO process for Smartworks.

(With inputs from agencies.)