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Smartworks Coworking Spaces, a managed campus operator in India, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO).
The IPO will consist of a fresh issuance of equity shares worth Rs 550 crore and an Offer for Sale (OFS) of 67.59 lakh equity shares by existing shareholders.
The company has also indicated the possibility of raising an additional Rs 110 crore through a pre-IPO placement, which would reduce the size of the fresh issue accordingly.
Shareholding and Promoter Details
The Offer for Sale (OFS) includes 16 lakh shares from promoters NS Niketan LLP and SNS Infrarealty LLP, while investor Space Solutions India Pte (formerly Lisbrine Pte) will sell the remaining 51.59 lakh shares.
Currently, the promoters hold a 69.19% stake in the company, with the remaining 30.81% owned by public shareholders, including Space Solutions India, which holds a 19% stake, and Ananta Capital Ventures Fund, with 1.08%.
Utilization of IPO proceeds
The proceeds from the fresh issue will be strategically allocated to meet the company’s growth and operational needs.
Specifically, Rs 282.3 crore is earmarked for capital expenditure related to fit-outs and security deposits for new centres.
Additionally, Rs 140 crore will be used to repay existing debt, and the remaining funds will be utilized for general corporate purposes.
Business operations and market presence
Smartworks Coworking Spaces is renowned for its expertise in transforming large, bare-shell properties into fully serviced, tech-enabled workspaces equipped with modern amenities such as cafeterias, sports zones, gyms, crèches, and medical centres.
The company primarily caters to mid-to-large businesses requiring more than 300 seats.
As of March 2024, Smartworks operates 41 centres across 13 cities, including Bengaluru, Mumbai, Hyderabad, Gurugram, and Chennai, with a total Super Built-Up Area (SBA) of 8 million square feet.