Smartworks Coworking Spaces Limited IPO

Industry	Price Band	Recommendation
Flexible Workspace & Managed Office Space	₹387 to ₹407	APPLY

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Company Overview

Smartworks Coworking Spaces Limited is India’s leading provider of managed and flexible office spaces, founded in 2016. Headquartered in Gurugram, the company operates over 50 centers across 14+ cities, managing approximately 8 million sq. ft. and 163,000 seats as of FY24. Its core clientele includes Fortune 500 firms, MNCs, and large Indian enterprises, offering fully serviced, tech-enabled office campuses with facilities like cafeterias, gyms, and smart access systems. Smartworks stands out for its turnkey delivery model, enabling enterprise-grade office setups within 45–60 days.

The company posted robust growth in FY24, with revenue rising to ₹1,042 crore and EBITDA of ₹667 crore, while net loss narrowed to ₹50 crore. Backed by investors like Keppel Land, Deutsche Bank, and prominent family offices, Smartworks is also pursuing a ₹5,500 million IPO alongside a potential ₹1,100 million Pre-IPO placement. It plans significant expansion in the next five years by adding over 100,000 seats, while maintaining high occupancy levels (~86% in H1FY25). Despite strong momentum, key risks include its leveraged balance sheet and dependence on large leases, requiring continued focus on financial discipline.

IPO Date	July 10, 2025 to July 14, 2025
Price Band	₹387 to ₹407 per share
Lot Size	36 Shares
Issue Size	₹582 crores
Allotment Date	July 15 2025
Listing Date	July 17 2025

Key Performance Indicators (As of December 31, 2024)

Metric	Value
ROCE	42.30%
Debt/Equity	2.90
RoNW	-58.76%
EBITDA Margin	62.39%
Price to Book Value	38.58

Financial Highlights

Period Ended	31 Mar 2025	31 Mar 2024	31 Mar 2023
Assets	4,650.85	4,147.08	4,473.50
Revenue	1,409.67	1,113.11	744.07
Profit After Tax	-63.18	-49.96	-101.05
EBITDA	857.26	659.67	424.00
Net Worth	107.51	50.01	31.47
Reserves and Surplus	4.69	29.01	-46.23
Total Borrowing	397.77	427.35	515.39

Industry Outlook

India’s flexible workspace industry is currently experiencing a major boom, driven by strong occupier confidence—nearly 65% YoY growth in flex space leasing was recorded in Q2 2025, totaling 4.3 million sq ft. This trend spans India’s leading metros, with significant demand from technology firms and Global Capability Centres (GCCs), which together accounted for over 50%–60% of occupancy. Large incumbents like Smartworks are securing substantial large-block deals—e.g., ~159 k sq ft in Bengaluru in Q2—highlighting strong enterprise appetite for fast‑deploy, scalable, and amenity-rich office solutions.

Looking ahead, the outlook remains optimistic. ICRA projects India’s flex office supply across the top six metros to rise from 80 msf in December 2024 to 125 msf by March 2027, growing at a 21%–22% CAGR. Market research indicates the sector is on track to reach USD 2–2.4 billion by 2025, expanding at 7–14% CAGR through 2030 . Urban expansion, hybrid work models, and cost-effective leasing continue to fuel this upward trajectory, positioning flexible workspace as a structural game-changer in India’s commercial real estate landscape.