Smartworks Coworking Spaces Ltd, a leading flexible workspace provider, disclosed a consolidated debt of ₹382 crore (₹3,819.67 million) as of April 30, 2025, in its Red Herring Prospectus (RHP) filed with SEBI, ahead of its Initial Public Offering (IPO) opening on July 10, 2025. The Gurugram-based company, which operates 48 centres with over 1.9 lakh seats across 14 cities, aims to raise ₹583 crore through the IPO, closing on July 14.

The IPO comprises a fresh issue of 1.09 crore shares worth ₹445 crore, down from an earlier planned ₹550 crore, and an offer for sale (OFS) of 33.79 lakh shares (reduced from 67.59 lakh), aggregating to ₹137.56 crore. Of the fresh issue proceeds, ₹226 crore will fund capital expenditure for new centre fit-outs and security deposits, ₹114 crore will repay loans, and the remainder will support general corporate purposes, including technology and marketing enhancements.

Smartworks reported a widened net loss of ₹63.17 crore in FY25, up 21% from ₹49.95 crore in FY24, despite a 32% revenue surge to ₹1,374.05 crore from ₹1,039.36 crore. The company attributed losses to expenses outpacing income but aims to achieve profitability by boosting revenue and optimizing costs. Its EBITDA grew 3.5x to ₹172 crore in FY25, with a 12.5% margin, signaling operational improvements.

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With a portfolio of 8.31 million square feet, plus 0.7 million under fit-outs and 1.7 million leased but not yet possessed, Smartworks targets mid-to-large enterprises in cities like Bengaluru, Mumbai, Hyderabad, and Chennai. Its largest centre, Vaishnavi Tech Park in Bengaluru, spans 0.7 million square feet. Post-IPO, net debt is expected to drop from ₹299 crore to ₹175 crore, strengthening its financial position.

Promoters Neetish Sarda, Harsh Binani, and others will retain a 58% stake, while Keppel Land, offloading part of its 19% stake, will hold 15%. The IPO, managed by JM Financial and others, is set to list on BSE and NSE on July 17, with a projected market capitalization of ₹4,394–4,645 crore.

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