Smartworks Coworking Spaces, a company providing workspace solutions, made a b debut on the stock market today. The company's IPO was already a subject of much discussion, and good enthusiasm was seen among investors. Today, when its shares were listed on the stock exchange, they listed at ₹435 on the NSE and ₹436.10 on the BSE, against an issue price of ₹407. This translates to a premium of approximately 7 percent.
According to IPO listing data, the shares listed at ₹435 on the NSE and reached ₹436.10 on the BSE. The issue price was fixed at ₹407 per share. Thus, the company gave its investors excellent returns on its listing day.
Grey Market Premium Was Already Hinting
Prior to the IPO, Smartworks' grey market premium (GMP) was ₹25. This meant that the market was already expecting the shares to list at a premium. The listing day performance was in line with this expectation and met investor expectations.
Subscription Received Tremendous Response
Smartworks' IPO received a fantastic response from the market. The company's issue was subscribed 13.92 times overall. From retail investors to qualified institutional buyers and high net worth individuals (HNIs), all showed b interest.
The IPO size was initially fixed at ₹550 crore, but was later reduced to ₹445 crore. Simultaneously, the Offer For Sale (OFS) was also reduced from 67.59 lakh shares to 33.79 lakh shares.
Who Are the Promoters and Major Investors?
The promoter group of Smartworks Coworking includes Neetish Sarda, Harsh Binani, and Soumya Binani. After the IPO, the promoters' stake has decreased from 65% to 59%.
The company also includes several renowned investors, including big names like Ananta Capital, Hexaware, Enam Group, and Deutsche Bank. In addition, well-known investor Madhu Kela invested in the company as an angel investor in 2017.
Strong Presence in Major Metropolitan Cities of the Country
Smartworks is one of the leading flexible office space provider companies in the country. The company operates in major metropolitan cities such as Delhi-NCR, Mumbai, Bangalore, Pune, and Chennai. Its focus is on providing tech-enabled workspaces to large corporates and multinational companies.
The company provides end-to-end office solutions for corporates, including everything from office designing and management to technology integration. This model has experienced rapid growth due to changes in work culture after the pandemic.
Can Benefit From Increasing Demand
The flex space sector is growing rapidly due to the changing office culture and hybrid working models in the country. Startups, IT companies, and financial firms, in particular, now prefer flexible models over traditional office leases. Smartworks already exists in this segment and can benefit from it.
Expansion Plan
The company will use the funds raised from the IPO to increase its leased properties, invest in workspace infrastructure, and repay debt. Smartworks has already established a presence in the top metropolitan cities of the country and is now focused on expansion.
The company says that in the coming months, it will increase new buildings, tech upgrades, and solutions for large enterprise clients. In addition, the plan includes the use of IoT and AI-based technology to enhance customer experience.
Fast Pace and Competitive Environment in the Workspace Industry
Several players such as WeWork, Awfis, 91Springboard, and IndiQube are already present in the country's workspace industry. Competition for market share persists among these companies. In such a situation, Smartworks will have to create a distinct identity based on its model and technical solutions.
Currently, Smartworks' focus is on large office campuses and the B2B segment, which sets it slightly apart from other startups.
