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Initial public offerings

Smartworks Sets Price Band for Upcoming IPO at Rs 387-407 per Share

Strategic Insights

— 2 min read

Smartworks, a leading flexible workspace provider, is gearing up for its initial public offering (IPO) with a price band set at Rs 387-407 per share. The company aims to raise Rs 583 crore, with a fresh equity issue of Rs 445 crore and an offer-for-sale (OFS) totalling Rs 138 crore. The IPO will hit the capital markets on July 10 and close on July 14.

The company plans to use Rs 114 crore from the fresh equity issue to retire high-cost debt, while the balance will be utilized for expansion. Smartworks has denied all allegations made against it and its promoter group, stating that certain complaints were made following the filing of its Draft Red Herring Prospectus (DRHP) on August 14, 2024.

Key Takeaways:

  • Smartworks aims to raise Rs 583 crore through its IPO, with a fresh equity issue of Rs 445 crore and an offer-for-sale (OFS) totalling Rs 138 crore.
  • The company will use Rs 114 crore from the fresh equity issue to retire high-cost debt.
  • Smartworks has denied all allegations made against it and its promoter group, stating that certain complaints were made following the filing of its DRHP on August 14, 2024.
  • The company's revenue from operations rose from Rs 711 crore in FY23 to Rs 1,374 crore in FY25.
  • Smartworks has a total footprint of 10.08 million sq ft as of June 30, having grown at a CAGR of 20.80% between FY23 and FY25.
  • The company added 2.83 million sq ft of area in the last two years.
  • 31.90% of rental revenue in FY25 came from multi-city clients.
  • Smartworks has two centres in Singapore with a total area of 35,036 sq ft.
  • The company has four leased centres in India exceeding 500,000 sq ft each.

Statistics:

  • Rs 583 crore: Amount Smartworks aims to raise through its IPO.
  • Rs 445 crore: Fresh equity issue component of the IPO.
  • Rs 138 crore: Offer-for-sale (OFS) component of the IPO.
  • Rs 114 crore: Amount to be used to retire high-cost debt.
  • 10.08 million sq ft: Total footprint of Smartworks as of June 30.
  • 20.80%: CAGR of Smartworks' footprint growth between FY23 and FY25.
  • Rs 2.83 million sq ft: Area added by Smartworks in the last two years.
  • Rs 1,374 crore: Revenue from operations in FY25.
  • 31.90%: Rental revenue from multi-city clients in FY25.
  • 35,036 sq ft: Total area of Smartworks' centres in Singapore.
  • 500,000 sq ft: Minimum area of Smartworks' leased centres in India.

Sources:

  • ET (August 2024): "Smartworks receives SEBI nod for Rs 583 crore IPO"
  • RHP (Smartworks) (2024): "Draft Red Herring Prospectus"
  • SEBI (December 2023): "Approval for Smartworks IPO"

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