Smartworks Coworking IPO 2025: Price, Date & Details

The IPO of Smartworks Coworking Spaces Limited is going to open on July 10, 2025 and close on July 14. This issue of about ₹582 crore includes both a fresh issue and an offer for sale. The company is one of the few companies in the country that provides tech enabled and fully serviced office space for large enterprise clients. Due to its rapidly growing network and unique business model, this IPO is garnering special interest from investors.

About Smartworks Coworking Spaces Limited

Smartworks Coworking Spaces Limited was founded in the year 2015. The company provides customized, technology-driven and fully serviced office spaces for enterprise clients. It aims to provide companies with a workspace that is not just a place to work but also a collaborative and convenient work environment.

Service Features : Smartworks provides its clients with modern office spaces equipped with facilities such as cafeteria, gym, crèche, medical center etc. These office spaces are fully furnished and technology integrated to enhance both productivity and well-being of the employees.

Current Status (as of March 2025) : As of March 2025, the company has a total of 728 active clients and 1,69,541 seats available, out of which 12,044 seats are still vacant. Its network is spread across major business cities of the country.

Industry Leadership : Smartworks operates 4 of the 5 largest leased office centres in India, with Vaishnavi Tech Park (0.7 million sq ft) in Bengaluru being the largest centre, which outperforms many other companies in terms of scale and facilities.

Business Model and Partnerships : The company’s business model creates an ecosystem between customers, landlords and service partners. It works with non-institutional landlords to convert properties into Smartworks branded campuses, providing long-term benefits to all parties.

Employees and Network : As of March 2025, the company has 794 permanent employees who handle operations spread across India. Apart from this, the company’s association with service partners also gives it a distinct identity, which includes names like Chai Point and ClearTax.

Financial Performance

Objective of the Smartworks Coworking Spaces Limited

Partial or full repayment of debt (Repayment/Prepayment of Borrowings) : The company will use a part of the amount raised from this IPO to repay its existing debt. A total amount of ₹ 114 crore will be used to partially or fully repay the old loan. This will strengthen the balance sheet of the company and reduce the interest burden, which will help in increasing profits in future.

Capital Expenditure for New Centers : Smartworks is planning to expand its existing network. For this, the company will invest ₹ 225.84 crore in the form of interior fit-outs and security deposits in new centers. This expenditure will be made to make those new office spaces modern and technologically capable, which can attract large enterprise clients.

General Corporate Purposes : The company will use the remaining proceeds from the IPO for its general corporate needs such as operational expenses, working capital, technology upgradation and other growth initiatives. This will give the company the ability to grow with flexibility and remain competitive.

Smartworks Coworking Spaces Limited IPO Reservation Details

Competitive Strengths of Smartworks

Leading position in India’s premium managed office space sector : Smartworks is one of the largest private sector managed coworking space companies in the country. It exclusively offers tech-enabled, fully furnished office spaces to large and mid-sized enterprise clients, giving it a strong competitive edge over other companies.

Scalability and pan-India presence : The company’s network is spread across major business cities in the country such as Bengaluru, Gurugram, Mumbai, Hyderabad, and Pune. As of March 2025, the company had 169,541 seats, indicating that it is capable of operating at a large scale. In addition, the company still has 12,000+ seats unused, which are possible to commercialize in the future.

Enterprise client-focused strategy : Smartworks focuses on companies with large seat demand—such as MNCs, IT/ITES companies, BFSI and startups. This strategy not only generates stable revenue but also strengthens long-term client relationships.

Capital efficient and partner-friendly business model : The company’s business model prioritizes capital savings. Smartworks partners with non-institutional landlords to convert their property spaces into ‘Smartworks Campus’. This allows the company to develop larger spaces without a large capital investment.

Risk management-based strategy : Smartworks’ strategy is based on long-term leases, cost-controlled fit-outs and a diverse client portfolio, allowing it to remain stable despite market fluctuations. This maintains financial stability and also limits the overhead burden on the company.

Operational efficiency and high EBITDA margin : The company’s EBITDA in FY25 stood at ₹857.26 crore and the EBITDA margin was recorded at 62.39%, which shows that the company’s operational efficiency is strong. This margin is much higher than other coworking companies, which can be a positive sign for investors.

Technological integration and value-added services for customers : Smartworks has partnered with service partners like Chai Point, ClearTax in its centers, providing facilities like cafeteria, medical room and fitness to the employees. This creates an enterprise-friendly environment and also promotes the well-being of the employees.

Potential risks associated with investing in Smartworks

Continuous loss-making company : Smartworks has not yet been able to make profits. The company has incurred a loss of ₹63 crore in FY25, which has increased further compared to last year. Apart from this, RoNW (Return on Net Worth) has also been -58.76%, which may be a matter of concern for investors.

High debt-to-equity ratio : The company’s debt-to-equity ratio is 2.90, which shows that the company still has heavy financial debt. High debt increases interest costs and there is a possibility of reduced profits.

Increasing competitive pressure : New players are rapidly coming into the coworking and managed office space sector. Brands like WeWork, Awfis, 91Springboard and OYO Workspaces are already active in the market, which may make it challenging for Smartworks to maintain and increase its share.

Dependence on the commercial real estate market : The company’s business model is completely based on office real estate. If the market slows down or corporates reduce their office space requirements, it will directly impact Smartworks’ revenue and seat occupancy.

Uncertainty regarding occupancy of new seats : The company had more than 12,000 vacant seats as of March 2025. If these seats are not filled in time, fixed costs may increase and profitability may come under pressure.

Smartworks Coworking Spaces Limited GMP

The grey market is now witnessing good activity regarding the IPO of Smartworks Coworking Spaces Limited. According to the latest reports, the GMP of this issue is running between ₹ 25 to ₹ 30. That is, it is showing a premium of about 6-7% against the upper end of the company’s price band of ₹ 407.

This clearly means that some investors in the market are showing positive sentiments towards this IPO and are expecting gains on initial listing. However, this premium will also depend on the opening of the IPO and subscription trends.

Also Read : Top Women Investors in India 2025

Final Thoughts

Smartworks Coworking Spaces Limited IPO is a hot topic in India’s premium managed office space sector. The company’s growth, scalability, and tech-enabled approach are attractive, but aspects such as the current deficit and debt position cannot be ignored. For investors, this IPO gives a glimpse of a business model that adapts to rapidly changing corporate workspace trends.