IPO listed on 17 Jul'25
Smartworks Coworking Spaces Ltd
Minimum Investment
₹ 14,652 / 36 shares
Grey market premium
₹ 25 (6% premium)
Issue price
₹ 407
Listing price
₹ 435
Listing gains
28 (7%)
Listing on
Jul 17, 2025
Our Verdict:
Neutral
- Smartworks Coworking Spaces Ltd (SCSL) has grown significantly, with its managed Super Built-up Area (SBA) expanding at a robust CAGR of 20.8% from FY23 to FY25. Revenue from operations grew even faster, at a CAGR of 39%. However, despite this growth, the company has yet to achieve profitability.
- While scalability is a key strength, it is not sufficient to navigate the competitive, capital-intensive managed office space market. The risk for retail investors remains considerable until the company outlines a clear path to profitability and reduces its reliance on external capital. Additionally, increasing competition, operational risks and challenges in client retention remain major concerns.
- Given these factors, risk-tolerant investors seeking short-term gains from the IPO may consider subscribing. However, long-term investors should closely monitor the company’s financial performance in the coming quarters before making investment decisions.
About the company
Founded in
17 Dec'15
Managing director
Neetish Sarda
- SCSL is a leading provider of office experiences and managed campus solutions, primarily serving mid-to-large enterprises. The company leases large, bare-shell properties in prime locations from landlords and transforms them into fully serviced, tech-enabled campuses. In addition to managed workplace solutions, SCSL offers value-added services to enhance the workplace environment. Its clients include leading corporate houses such as Google, L&T Technology Services, Groww and MakeMyTrip.
- SCSL serves teams of all sizes, from under 50 to over 6,300 seats, with a particular emphasis on enterprises that typically require more than 300 seats. As of March 31, 2025, it operates in 14 Indian cities and Singapore. Its 28 key clusters across Tier 1 cities account for approximately 80% of the total flexible workspace stock in these markets.
STRENGTHS
- Market Leadership: As of March 31, 2024, SCSL was the largest managed campus operator among benchmarked competitors, with a lease-signed portfolio of 8 million square feet. By March 31, 2025, it had leased and managed a total of 8.99 million square feet of space.
- Revenue Growth: From FY23 to FY25, SCSL achieved a robust compound annual growth rate (CAGR) of 39% in operating revenue and 42% in EBITDA.
- Operational Efficiency: SCSL showcases strong operational efficiency, with a Return on Capital Employed (RoCE) of 42% in FY25. The company also posted an impressive EBITDA margin of 62.4% for FY25.
RISK FACTORS
- Weak Track Record: SCSL and its subsidiaries have reported consistent losses over the past three years. The company's future hinges on its ability to increase revenue and manage expenses effectively to reach profitability. Failing to meet these objectives could negatively impact business operations, cash flows and financial stability.
- Negative Financial Indicators: Over the last three fiscal years, SCSL has reported a negative weighted average Earnings Per Share (EPS) of Rs (6.58) and a negative weighted average Return on Net Worth (RoNW) of (116)%.
- Geographic Concentration: As of FY25, 75% of SCSL's rental revenue is derived from centres in Pune, Bengaluru, Hyderabad and Mumbai. Any adverse developments in these locations could significantly impact the company’s operations and financial results.
- Client Dependency: SCSL’s business primarily serves clients who require more than 300 seats across multiple centres and cities. The company may face challenges in negotiating favourable terms with these large clients and may struggle to find suitable replacements if agreements are terminated, potentially affecting its business, cash flows and financial performance. In FY25, 63% of rental revenue was generated from clients with more than 300 seats.
- Lease Agreements: SCSL leases large properties from passive, non-institutional landlords for 10–15 years. There is a risk that landlords may not renew leases or may alter terms, potentially affecting the company's business, cash flows and financial performance. Additionally, the security deposit per square foot increased to Rs 485 in FY25 from Rs 289 in FY24 and this could fluctuate based on new lease terms.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 582.56 crore
Fresh Issue
₹ 445 crore
OFS
₹ 137.56 crore
Price range
₹ 387 - 407
Lot size
36 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for:
- Pre-payment or re-payment of certain outstanding borrowings availed by the Company;
- Capital expenditure for fit-outs and security deposits for the New Centres; and
- General corporate purposes.
Dates
Bidding open
10 Jul'25
Bidding close
14 Jul'25
Allotment date
15 Jul'25
Refund date
16 Jul'25
Listing
17 Jul'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.