Smartworks made a strong entry into the public market today, with its shares listing at a 7.14% premium on the BSE, opening at INR 436.10 against the issue price of INR 407. On the NSE, the stock listed at INR 435, reflecting a 6.88% gain over its IPO price.
By 10:20 AM, shares were trading at INR 462.30, up 6.01%, giving the managed office space provider a market capitalisation of INR 5,280.86 Cr.
The market debut follows a robust IPO response, which saw a 13.45x oversubscription, driven primarily by strong demand from qualified institutional buyers (QIBs). The IPO featured a price band of INR 387–INR 407 and included a fresh issue worth INR 445 Cr along with an offer for sale (OFS) of up to 33.79 lakh shares.
Smartworks plans to utilise the IPO proceeds to repay borrowings, invest in capital expenditure for security deposits, and expand by developing new centres.
The listing came just a day after the Securities Appellate Tribunal (SAT) dismissed an appeal seeking to halt the IPO. The challenge was filed by Infrastructure Watchdog, an NGO, which alleged that Smartworks and its promoters were under investigation by the Income Tax Department and had received funds through shell companies and benami transactions. The company categorically denied all accusations.
Ahead of the IPO, Smartworks secured INR 173.64 Cr in an anchor round from prominent institutional investors including Tata Mutual Fund, Aditya Birla Sun Life, Axis Mutual Fund, SBI General Insurance, Societe Generale, and Baroda BNP Paribas.
Founded in 2016 by Neetish Sarda and Harsh Binani, Smartworks operates as a managed workspace provider, leasing large buildings and converting them into enterprise-ready campuses. The company currently manages 10 Mn sq ft of space with an average lease tenure of 48 months.
Apart from leasing, Smartworks also earns revenue from ancillary services like meeting rooms, internet access, parking, and electricity.
On the financial front, Smartworks posted a net loss of INR 63.2 Cr in FY25, a 26.5% increase YoY, while operating revenue rose 32% to INR 1,374 Cr. The management has indicated that it expects to reach breakeven at the unit level within the next 12 months.
