Gurugram-based flexible office operator Smartworks Coworking Spaces has filed its preliminary papers with markets regulator Securities and Exchange Board of India to mobilise funds through an initial public offering (IPO).
The IPO will include a mix of fresh issuance of equity shares worth ₹550 crore, and an offer-for-sale (OFS) of 67.59 lakh equity shares by the existing equity shareholders, the Draft Red Herring Prospectus showed.
Promoters NS Niketan LLP and SNS Infrarealty LLP will collectively sell 16 lakh shares in the OFS, while the remaining 51.59 lakh shares will be sold by investor Space Solutions India Pte.
Also Read: After Awfis, three major co-working firms mull Initial Public Offering in 2025: Sources
Net proceeds from the exercise will be used for repayment of loans and capital expenditure/security deposits tied to new centres, to the tune of ₹140 crore and ₹282.30 crore, respectively. The remaining will be allocated for general corporate purposes.
Smartworks may also consider raising ₹110 crore through a pre-IPO placement and in such an event, the amount raised will be deducted from the total fresh issue size, the DRHP showed. The Keppel-backed coworking player raised ₹168 crore earlier this year.
JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd and Kotak Mahindra Capital Company Ltd were named as the book running lead managers for the exercise.
Also Read: Co-working firm BHIVE Workspace likely to launch IPO in the next two years
Where are Smartworks Coworking spaces located?
Smartworks Coworking Spaces Ltd specialises in leasing large, bare-shell properties in prime locations and transforming them into fully serviced, tech-enabled campuses with modern amenities. The company caters to businesses of all sizes, with a focus on mid-to-large companies that need over 300 seats.
Smartworks is concentrated in cities including Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram and Chennai. As of March 31, 2024, the company had a presence in 13 cities and a portfolio comprising 41 centres spanning 8 million square feet.
The announcement comes after peer Awfis Space Solutions made its stock market debut earlier this year in May. The initial public offering included a fresh share sale of ₹128 crore and an offer -for-sale of up to 1.22 crore equity shares worth ₹470.93 crore at the upper price band.
Aslo Read: Realty firm Kalpataru Ltd files draft papers to raise up to ₹1,590 cr via IPO
Prior to the IPO, Awfis raised nearly ₹269 crore from marquee anchor investors including Invesco, Axis Mutual Fund, HDFC Small Cap Fund, Goldman Sachs India Equity and HSBC Global Investment Fund.
HT.com in a June report named Smartworks as one of the three coworking firms exploring an initial public offering in 2025.
