Smartworks IPO Draws Robust Demand, Subscribed 13.45x

Smartworks IPO Soars with 13.45x Subscription Amid Strong Investor Demand

India’s largest managed office campus provider, Smartworks Coworking Spaces Ltd (SCSL), has dazzled the markets with its highly successful initial public offering (IPO). The issue, which opened on July 10 and closed on July 14, 2025, drew tremendous attention, receiving bids for 13.99 crore shares against only 1.04 crore shares on offer—an oversubscription of 13.45 times.

Anchored in India’s rising demand for premium tech-enabled workspaces, Smartworks’ strong market position and asset-light business model appear to have struck the right chord with investors across categories.

All Eyes on Smartworks: Breakdown of IPO Demand

The IPO witnessed vigorous participation across investor classes:

• Qualified Institutional Buyers (QIBs): Subscribed 24.41 times
• Non-Institutional Investors (NIIs): Subscribed 22.78 times
• Retail Individual Investors (RIIs): Subscribed 3.53 times

On July 9, 2025, a day ahead of bidding, Smartworks raised ₹173.64 crore through anchor placement, allotting 42.66 lakh shares at ₹407 apiece—the upper end of its price band—to 13 prominent anchor investors. Want to learn more? Here’s a guide to anchor investors in IPOs.

IPO Structure and Use of Proceeds

The IPO was structured as follows:

• Fresh Issue: ₹445 crore
• Offer for Sale (OFS): 33,79,740 shares, including:
  • 8,00,000 shares by promoters
  • 25,79,740 shares by investor shareholder Space Solutions India

Within the OFS:

• NS Niketan LLP offloaded 4,90,000 shares
• SNS Infrarealty divested 3,10,000 shares

Post-issue, Space Solutions India will retain a 19% stake.

Proceeds Utilisation Plan:

• ₹114 crore – Debt reduction by repaying or prepaying borrowings
• ₹225.84 crore – Capital expenditure for fit-outs and new center security deposits
• Balance – General corporate purposes

As of April 30, 2025, SCSL had consolidated borrowings amounting to ₹381.97 crore. By utilizing IPO proceeds to pare down debt, the company aims to strengthen its balance sheet. Explore how IPO funds mitigate debt risk: How IPOs improve financial health.

Business Model: Asset-Light Growth Engine

Founded by Neetish Sarda, Harsh Binani, and Saumya Binani, Smartworks follows a uniquely scalable, asset-light model. It leases large shell properties and transforms them into modern, tech-enabled managed campuses.

At a Glance (as of March 2025):

• 8.99 million sq. ft. of managed space
• Spread across 50 centers in 15 cities
• Over 2 lakh seats
• 728 clients served as of June 2025
• Enterprise clients contributed 88% of rental income
• Lease rentals made up 93% of FY25 revenue

Key markets—Pune, Bengaluru, Hyderabad, and Mumbai—jointly generated more than 75% of Smartworks’ FY25 rental revenue.

Going forward, the firm plans to foray into variable rental and management contract models, paving the way for higher margin flexibility and operational scalability. Read more about India's coworking space transformation.

Financial Snapshot: Building for the Long-Term

• FY25 Revenue: ₹1,374.06 crore
• Net Loss: ₹63.18 crore (for year ending March 31, 2025)

Despite running a loss, Smartworks' solid topline performance and high retention among enterprise clients reflect the platform’s long-term viability. The IPO gives it a financial springboard to pivot toward profitability and expansion.

Smartworks Sets Its Sights on the Future

With growing demand for flexible workspace solutions, Smartworks’ success story is just beginning. The enthusiastic subscription levels, particularly from institutional investors, underline growing trust in the asset-light, client-centric business model Smartworks champions.

As the brand gears up to redesign more workspaces across India, it rides a wave of investor optimism and operational scalability that could reshape the country’s office space ecosystem.