Smartworks Coworking Spaces Ltd, a leading coworking startup, has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to initiate its initial public offering (IPO).
This move comes just over a month after the company transitioned into a public entity, signaling a significant step in its growth trajectory.
IPO Details
The IPO will consist of a fresh issue of equity shares worth ₹550 crore.
Additionally, there will be an offer for sale (OFS) of 67,59,480 equity shares by the company’s promoters.
Smartworks is also contemplating raising an additional ₹110 crore through a pre-IPO placement.
Funding Objectives
The company intends to use the net proceeds from the IPO for several key purposes, outlined as follows:
- Repayment/Prepayment/Redemption of Borrowings: ₹140 crore will be allocated towards the repayment, prepayment, or redemption, in full or in part, of certain borrowings availed by the company.
- Capital Expenditure: ₹282.3 crore will be used for capital expenditure for fit-outs in new centers and for security deposits of the new centers.
- General Corporate Purposes: The remaining amount will be directed towards general corporate purposes, with the specific amount yet to be determined.
Strategic Context
Founded in 2016 by Neetish Sarda and Harsh Binani, Smartworks has rapidly grown into a major player in the coworking space industry.
The company now operates over 80 lakh square feet of office space across 40+ locations in 13 cities, serving more than 600 enterprises.
Its client base includes prominent names like Google, Groww, MakeMyTrip, Discovery, and Philips.
Smartworks’ move to go public comes at a time of increased market activity among Indian startups, with several other major companies, such as FirstCry, Ola Electric, and Unicommerce, also making their market debuts this year.
The IPO and subsequent use of funds are expected to further bolster Smartworks’ position in the competitive coworking sector, where it faces competition from other significant players like Awfis, and WeWork India.
