Smartworks to launch its ₹445cr IPO on July 10
What's the story
Smartworks, a leading provider of flexible workspaces, will launch its initial public offering (IPO) on July 10. The offer will close on July 14. The firm had received approval from the Securities and Exchange Board of India (SEBI) in December last year to go public. The IPO will consist of a fresh issue of equity shares worth ₹445 crore, and an offer for sale (OFS) of up to 33.79 lakh shares by promoters.
Size reduction
Smartworks reduces IPO size
Smartworks has downsized its IPO size from the earlier planned ₹550 crore to ₹445 crore. The OFS by promoters has also been reduced from 67.59 lakh shares to the current figure. The company intends to use the funds raised through this IPO for capital expenditure related to new centers, paying off loans, and general corporate purposes.
Business strategy
Focus on leasing properties in prime locations
Smartworks specializes in leasing large, bare-shell properties in prime locations and converting them into fully serviced and tech-enabled campuses with modern amenities. These campuses offer a range of facilities like cafeterias, sports zones, gyms, medical centers, etc., offering an attractive work environment. The company caters to businesses of all sizes but primarily focuses on mid-to-large companies requiring over 300 seats.
Financials
Space under management and revenue growth
Between FY23-25, Smartworks added 2.83 million square feet of space under management, achieving a compound annual growth rate (CAGR) of around 20.80%. The company's revenue from operations also grew significantly during this period. It reported a revenue of ₹711 crore in FY23 which jumped to around ₹1,374 crore by FY25.