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Economic Times
2 days ago
- Business
- Economic Times
Smartworks Coworking IPO: Issue subscribed 4.15 times on last day of bidding. What GMP indicates?
Here's all that you need to know: Smartworks Coworking IPO subscription status What does Smartworks Coworking GMP indicate? Live Events Should you apply for Smartworks Coworking IPO? Anand Rathi: Subscribe-Long term SBI Securities: Avoid Bajaj Broking: Subscribe for long term Smartworks Coworking listing Smartworks Coworking IPO details (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The initial public offering (IPO) of Smartworks Coworking Spaces has been subscribed 4.15 times so far on Monday, the final day of the bidding process. The issue, which opened on July 10, closes today, with the shares of the company trading at a grey market premium (GMP) of 3.7% or Rs non-institutional investors (NIIs) drove the highest demand, subscribing to the issue by 8.33 times, making 1,84,79,448 bids against the 22,17,233 shares reserved for them. This was followed by the qualified institutional buyers (QIBs) at 4.5 times and retail investors, with a healthy subscription of 2.35 or Grey Market Premium, indicates the premium at which shares of an upcoming IPO are being traded in the unofficial or "grey" market ahead of their official listing on the stock example, the IPO price of Smartworks Coworking is Rs 387-407, and its GMP is Rs 17; this means the shares are being traded at Rs 424 in the grey market. GMP reflects investor sentiment and expectations about the listing price. However, it is unofficial, not regulated by SEBI, and can be speculative or or Grey Market Premium, is an unofficial and unregulated indicator that may not always be reliable. It is based on limited trades and market sentiment rather than actual company fundamentals. As it is largely driven by speculation, GMP can fluctuate significantly and often does not accurately reflect the true demand or the eventual listing price of the analysts at Anand Rathi believe that the IPO is fully priced and recommend a 'Subscribe-Long term' rating to the IPO. The brokerage firm states that at the upper price band, the company is valued at P/S of 3.3x with EV/EBITDA of 9.7x and a market cap of Rs 46,448 million post issue of equity Securities issues an 'Avoid' rating for the brokerage firm believes that companies like Awfis Space Solutions offer better investment opportunities within the coworking space, which is currently profitable and trades at FY25 EV/Adj. EBITDA of has become a leading provider of office experience and managed campus platforms, focusing on long-term contracts with MNCs. While it has seen top-line growth and positive cash EBITDA at the gross level, net losses have been reported due to provisioning under new accounting standards. The company operates with high lease liabilities from fixed-cost agreements across centers, leading to significant interest and depreciation expenses under Ind AS 116. This boosts EBITDA but puts pressure on net IPO opened for subscription on July 10 and closes today, on July 14. The allotment of shares is expected to be finalized on July 15, with the stock tentatively scheduled to list on both the BSE and NSE on July Day 1 of the bidding saw a relatively lukewarm start, demand picked up strongly on the final day, especially from institutional investors, suggesting growing confidence in the company's fundamentals and long-term prospects.'The strong traction from institutional and affluent investor segments positions the Smartworks IPO in the 'Hot' response category by market standards, particularly for a new-age commercial real estate player operating in the managed office space segment,' said Gaurav Garg of Lemonn Markets Coworking Spaces plans to raise Rs 576–583 crore through a combination of fresh issue and offer-for-sale (OFS). The IPO, open for bidding until July 14, is scheduled to list on the BSE and NSE on July 17. The offer includes a fresh equity issue worth Rs 445 crore and an OFS of 33.79 lakh company has fixed the price band for the IPO at Rs 387 to Rs 407 per share.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
2 days ago
- Business
- Economic Times
Smartworks Coworking IPO GMP at 4.7% on Day 3. Check subscription status, other details
Reliance Infrastructure shares saw a surge after India Ratings upgraded its credit rating. The rating moved up three notches, removing the 'Default' classification after six years. This upgrade reflects the company's significant debt reduction. Reliance Infra now reports near-zero debt with banks and financial institutions. The stock has shown substantial gains over the past year. Tired of too many ads? Remove Ads Smartworks Coworking Spaces IPO details Tired of too many ads? Remove Ads Use of funds According to the filing, proceeds from the IPO will be utilized as follows: Rs 225.8 crore for fit-outs and security deposits at new centres Rs 114 crore for debt repayment The remainder will be allocated towards general corporate purposes Smartworks Coworking Spaces profile Smartworks Coworking Spaces financials Tired of too many ads? Remove Ads Analyst recommendations Opinions remain divided among brokerage houses: Anand Rathi assigned a 'Subscribe – Long Term' rating, highlighting that at the upper price band, the company's valuation stands at a price-to-sales (P/S) ratio of 3.3x and an enterprise value-to-EBITDA (EV/EBITDA) multiple of 9.7x, post issue market capitalization pegged at Rs 4,644.8 crore. SBI Securities, however, issued an 'Avoid' recommendation, citing stronger alternatives like Awfis Space Solutions, which is profitable and trades at a significantly higher FY25 EV/Adj. EBITDA multiple of 26.5x. Bajaj Broking recommended a 'Subscribe for Long-Term', citing Smartworks' leadership position and focus on long-term contracts with multinational clients. The brokerage noted that while the company has posted positive cash EBITDA, reported losses are driven by provisions under accounting standards like Ind AS 116, which recognize lease liabilities as fixed costs, inflating interest and depreciation expenses. Book running lead managers Shares of Smartworks Coworking Spaces are witnessing strong demand in the grey market, trading at a premium of 4.7% (around Rs 19-20) over the issue price on the last day of its Friday, the second day of the offer, the issue was subscribed by 1.15 times, with non-institutional investors (NIIs) in the lead with 1.79 times subscription, followed by the retail investors who subscribed to the issue by 1.18 qualified institutional buyers subscribed to the issue by 63%.Smartworks Coworking Spaces aims to raise Rs 576-583 crore through a mix of fresh issue and offer-for-sale (OFS). The IPO, open for subscription until July 14, is slated to list on both BSE and NSE on July issue comprises a fresh equity issue of Rs 445 crore and an offer for sale (OFS) of 33.79 lakh company has set a price band of Rs 387–407 per share, with a Rs 37 per share discount offered to employees. Investors can bid in lots of 36 shares and in multiples in 2015, Smartworks Coworking Spaces is India's largest managed workspace provider by leased area, operating over 8.99 million sq ft across 50 centres in 15 Indian cities as of March 31, 2025. The company also has two centres operational in Singapore. It primarily caters to mid-to-large enterprises in sectors like IT, BFSI, and company operates primarily on a straight lease model, but is gradually shifting towards variable rental agreements to improve cost business model revolves around providing customized managed office spaces with technology-driven services, aesthetic design, and enterprise-focused amenities. The firm also offers value-added services such as wellness zones, convenience stores, and design-build (FaaS) company has demonstrated strong revenue growth, with operating revenue surging from Rs 711.39 crore in FY23 to Rs 1,374.05 crore in FY25. Its EBITDA improved to Rs 857.26 crore during FY25. However, despite improving margins, the company remains loss-making, posting a net loss of Rs 63.17 crore for of March 2025, Smartworks reported an occupancy rate of 83.1%, catering to 738 enterprise clients across its facilities, with a total seating capacity exceeding 2 lakh. JM Financial , BOB Capital Markets, IIFL Securities , and Kotak Mahindra Capital are managing the public issue.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
India Today
6 days ago
- Business
- India Today
Smartworks Coworking Spaces IPO open for bidding: Should you subscribe?
The initial public offering (IPO) of Smartworks Coworking Spaces Limited opened for subscription on Thursday, July 10, company, which provides customised managed office spaces, plans to raise Rs 582.56 crore through this IPO. The offer consists of a fresh issue worth Rs 445 crore and an offer for sale (OFS) of Rs 137.56 bidding window for the IPO will remain open until Monday, July 14. Investors can place bids within the price band of Rs 387 to Rs 407 per share. A retail investor will need to invest a minimum of Rs 13,932 to apply for one lot, which consists of 36 shares. For high net-worth investors (sNII and bNII categories), the minimum investments stand at Rs 2,05,128 and Rs 10,10,988, issue also includes a reservation of up to 1,01,351 shares for eligible employees, who are being offered a discount of Rs 37 per share from the issue price.J.M. Financial is the book-running lead manager for the IPO, while MUFG Intime India Private Limited (Link Intime) is the registrar handling the allotment OVERVIEWFounded in 2015, Smartworks Coworking Spaces Limited focuses on offering managed office solutions to enterprise clients. The company designs and delivers ready-to-use, tech-enabled, and custom-designed workspaces. It currently operates several centres across major Indian cities, targeting multinational corporations (MNCs) and large domestic approach focuses on providing flexible leases and tailored office solutions for clients that require agility and modern infrastructure. Its growth has been supported by long-term contracts with enterprise clients, which has helped ensure a stable stream of POSITION AND RISKSDespite strong top-line growth, the company has been posting net losses. Analysts point out that this is largely due to accounting treatment under Ind AS 116, where lease expenses are not included in EBITDA but instead are recorded as depreciation and interest costs. This results in higher finance costs and reduced net profit Broking, in its IPO analysis, said, 'Smartworks has emerged as a leading provider of managed office spaces. The focus on long-term contracts with multinational clients is helping it grow. However, the high lease liability structure impacts the company's bottom line.'Bajaj Broking further explained that the IPO is priced at a price-to-book value (P/BV) of 38.58 based on the company's net asset value (NAV) as of March 31, 2025. After the issue, the P/BV drops to 8.40, based on the post-IPO NAV of Rs 48.45 per RESPONSE AND GMPIn the grey market, the Smartworks Coworking Spaces IPO is showing some positive latest grey market premium (GMP) stands at Rs 33 as of July 10. This suggests a potential listing price of around Rs 440 per share, implying an estimated gain of 8.11% over the upper end of the issue the GMP does not guarantee listing performance, it often reflects early investor appetite in the unofficial allotment of shares is expected to be finalised on Tuesday, July 15, 2025. If all goes according to plan, the shares of Smartworks Coworking Spaces Limited will list on both BSE and NSE on Thursday, July 17, 2025.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends advertisement
