Smartworks Coworking Spaces made a strong debut on domestic bourses on Thursday, with its shares trading at a 7% premium to the initial public offering price. On the NSE, the stock opened at ₹435, up 6.88% from the issue price of ₹407 per share. The initial price of Smartworks' shares on the BSE was ₹436.10, which was 7.15% higher than the IPO price. To reach ₹4,977.27 crore, the company's market capitalization grew by about ₹70 crore.
In the meantime, the NSE Nifty dropped 25 points to 25,187, and the BSE Sensex dropped 68 points to 82,566. With the stock trading at a premium of ₹25 in the grey market, indicating a listing price of approximately ₹432, up 6.14% from the issue price, Smartworks' IPO listing fulfilled street expectations.
Key Highlights
- Smartworks shares debuted at ₹436.10 on BSE—up 7.15% from ₹407—mirroring strong investor interest.
- On NSE, stock opened at ₹435—a 6.9% gain—matching grey market’s optimistic GMP forecasts.
The ₹582 crore IPO of Smartworks, which comprised an offer for sale (OFS) of ₹137 crore from the promoters and a new issue of equity shares valued at ₹445 crore, was subscribed for 13.92 times in total. Institutional investors responded favorably to the initial public offering (IPO), which was available for subscriptions from July 10 to July 14. The portion reserved for qualified institutional buyers (QIBs) was subscribed 24.92 times, while the non-institutional investor (NII) segment received 23.68 subscriptions. The retail investor category received 3.69 subscriptions.
Retail investors could purchase 36 shares with a minimum investment of ₹14,652 per lot. The company reserved 50% of the IPO for QIBs, 15% for NIIs, and the remaining 35% for retail investors.
A day before the IPO, Smartworks raised ₹173.64 crore from anchor investors by allocating 42.66 lakh equity shares at ₹407 per share with a lot size of ₹10 each. Three domestic mutual funds subscribed for 32.04% of the 42.66 lakh shares allocated to anchor investors through four schemes in total. Tata Mutual Fund, Baroda BNP Paribas Mutual Fund, and Trust Mutual Fund are among the mutual funds that will participate.
Also Read: Smartworks Reports Rs 1,374 Cr Revenue in FY25 Ahead of IPO Push
Smartworks plans to use the net proceeds from the new equity issuance to pay back some of the loans it has taken out, cover capital costs for the new centers' fit-outs, and cover security deposits for the new centers that will be opened in fiscal years 2025, 2026, and 2027. The remaining amount will be used for general corporate purposes.
The office experience and managed campus platform will allocate ₹226 crore for capital expenditure, ₹114 crore for loan repayment, and the remainder for general corporate purposes.
