Smartworks Coworking Spaces Ltd has filed the necessary paperwork with the Securities and Exchange Board of India (SEBI) to initiate an initial public offering (IPO). The company, known for its managed campuses and premium office experiences, focuses on transforming large, unoccupied properties in prime locations into modern, fully-equipped campuses with amenities like cafeterias, gyms, sports areas, childcare facilities, and medical centers.
IPO Details
The draft prospectus reveals that the IPO includes an offer for sale (OFS) by the promoters of 67.59 lakh shares and a fresh issue of equity shares worth ₹550 crore. The proceeds from the fresh issue will be allocated as follows: ₹282.30 crore for security deposits and capital expenses for new centers, ₹140 crore for loan repayments, and the remaining amount for general corporate needs.
Share Sales and Management
As part of the OFS, Space Solutions India Pte (previously Lisbrine Pte) will sell 5,159,480 shares, NS Niketan LLP will offload 980,000 shares, and SNS Infrarealty LLP will divest 620,000 shares. The IPO is managed by JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd, and Kotak Mahindra Capital Company Ltd.
Acquisition Details
On March 27, 2024, Smartworks Space Pte. Ltd. entered into an agreement with Keppel Real Estate Services Pte Ltd to acquire property, equipment, customer deposits, and contracts related to two co-working centers in Singapore for USD 2.085 million (approximately ₹17.46 crore). The transaction was finalized on May 28, 2024, following the agreed conditions.
Clientele and Market Position
Smartworks’ clients range from Indian companies to multinationals, including Google IT Services India Private Ltd, L&T Technology Services Ltd, Bridgestone India Private Ltd, Philips Global Business Services LLP, Persistent Systems Ltd, Billionbrains Garage Ventures Private Ltd (Groww), and MakeMyTrip (India) Private Ltd. Many clients have long-term agreements at various locations. The company’s listed competitor is Awfis Space Solutions Ltd.
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