New Delhi: Smartworks Coworking Spaces will hit the capital market on July 10 to launch its Initial Public Offer (IPO) for raising nearly Rs 600 crore as the company intends to expand its business and reduce debt.
Gurugram-based Smartworks, one of the leading managed flexible office space providers, currently has 48 operational co-working centres with over 1.9 lakh seating capacities.
The company has fixed a price band of Rs 387-407 per share for its IPO, which will close on July 14.
The size of the fresh issue has been reduced to Rs 445 crore from the earlier planned Rs 550 crore, while the Offer For Sale (OFS) by promoters has been cut to 33.79 lakh shares from 67.59 lakh shares.
At the upper end of the price band, the company's IPO size is now estimated at Rs 583 crore, with a market valuation of about Rs 4,645 crore.
Out of the total proceeds from the fresh issue of shares, the company will use Rs 226 crore for capital expenditure related to the fit-outs in new centres and security deposits for these new centres.
It will utilise Rs 114 crore for payment of loans, and the remaining funds will be used for general corporate purposes. The OFS proceeds will go to promoters.
On the financial parameters, Smartworks has posted a net loss of Rs 63.17 crore in the last financial year due to higher expenses than income. Its net loss stood at Rs 49.95 crore in the preceding 2023-24 financial year.
However, the revenue from operations rose to Rs 1,374.05 crore in the 2024-25 fiscal from Rs 1,039.36 crore in the preceding year.
"These losses were on account of our total income being lower than the expenses for the relevant fiscal," the company said in its red herring prospectus (RHP) filed with Sebi.
The company would aim to increase revenue levels and decrease proportionate expenses to achieve profitability.
Its total consolidated debt stood at Rs 382 crore at the end of April.
Smartworks takes on lease office spaces from landlords and then sub-leases the areas to corporates. It has an operational portfolio of 8.31 million square feet area while 0.7 million square feet is under fit-outs.
The company has taken on lease another 1.7 million square feet area from landlords, but it has not obtained possession to set up the centres.
The total portfolio will cross 10 million square feet, including spaces under fit-outs and signed.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
