Smartworks IPO Day 1: Subscription at 0.13x; GMP at Rs 33

The IPO street is heating up again, and Smartworks Coworking Spaces is the latest name drawing trader interest. The grey market has placed early bets on the stock, with a premium of Rs 33 over its upper price band of Rs 407. That puts the expected listing price around Rs 440 – an 8 per cent pop.

But while the GMP may look tempting, there’s more to this coworking play than just a promising debut.

IPO details

Smartworks is looking to raise Rs 583 crore through a mix of fresh issue (Rs 445 crore) and OFS (Rs 138 crore). The proceeds will mainly go into expansion, capex and working capital.

Here’s what the subscription status looks like today (July 10, 2025):

• Overall: 0.13x
• Retail investors: 0.17x
• NIIs: 0.20x
• QIBs: 0

Why the GMP is holding up

So, why are investors betting on this listing?

• Strong anchor response: Rs 174 crore raised from top funds at the upper end of the band.
• Flexibility is in: Post-pandemic, large firms want managed offices without long lock-ins.
• Asset-light appeal: Smartworks builds out offices at nearly 50 per cent lower cost than peers.
• Peers aren’t cheap: AWFIS is listed at a higher P/B (nearly 14.8), making Smartworks look slightly more reasonable.

What could trip up the bulls

• Still bleeding: The company hasn’t posted a net profit yet. No EPS, no P/E.
• Concentration risk: Over 75 per cent of revenue comes from just four cities.
• Execution test ahead: Scaling further will mean more capex and more client wins. Can it keep margins high?

What Smartworks does

Smartworks Coworking Spaces runs premium managed office spaces – think plug-and-play campuses with all the bells and whistles, aimed at enterprises, not freelancers. Founded in 2015, it now operates 10 million square feet across 50 centres in 14 Indian cities (plus two in Singapore), serving over 800 clients.

Its model? Lease large spaces, deck them out at low cost and sublease to corporates on flexible terms.

The takeaway

This IPO is drawing interest for good reason—big revenue growth, high ROCE and strong demand for flexible offices. But the lack of profits and premium valuations means this isn’t a slam-dunk.

If you’re in it for listing gains, the GMP suggests decent upside. But for long-term investors, wait to see if Smartworks can convert all that scale into sustainable profits.

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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.