Smartworks makes smart debut

A new listing today – Smartworks Coworking. As against the IPO price of Rs.407, the stock got listed on the BSE at Rs.436.10 and rose to an intraday high at Rs.469.

Though the listing is very good, the response to the IPO itself not exactly a runaway success. It was overall subscribed 13.45x, with HNIs at 22.78x, QIBs at 24.41x and Retail investors participation was low at 3.53x.

Smartworks is an 8 year old, co-working company, operating 1.84 lakh seats across 54 centres in India, with 83% occupancy rate and 87% retention rate. In FY25, it clocked Rs. 1,370 cr revenue and Rs. 172 cr EBITDA adjusted for rent payment, under IndAS, implying a 12.6% margin.

Our IPO Analysis conclusion - ‘Avoid’ Smartworks Co-working IPO, due to lower margin, promoter discomfort and steep pricing.