Are Smartworks' Losses Increasing Ahead of Its IPO?
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Synopsis
Smartworks Coworking Spaces has reported a significant increase in losses ahead of its IPO. Discover how this impacts the company's future and what investors need to know as the subscription date approaches.
Key Takeaways
- Smartworks' losses increased significantly in FY25.
- The IPO subscription period starts on July 10.
- Price band set between Rs 387-407.
- Initial fundraising target reduced to Rs 445 crore.
- Funds will support expansion and financial stability.
Mumbai, July 7 (NationPress) The losses for Smartworks Coworking Spaces have surged to Rs 63.17 crore in FY25, marking an increase of Rs 13.22 crore compared to the losses reported in FY24, as disclosed in the company’s red herring documents on Monday in anticipation of its initial public offering (IPO).
The co-working space provider recorded a net loss of Rs 49.95 crore in the previous financial year 2023-24.
The IPO is set to open for public subscription on July 10 and will close on July 14. The fixed price range is Rs 387-407, with investors needing to purchase a minimum lot of 36 shares to submit a bid, as detailed in the red herring prospectus.
Allocation of shares to anchor investors is scheduled for July 9. This IPO will feature a blend of fresh shares valued at Rs 445 crore and an offer for sale of 3,379,740 equity shares.
Initially, Smartworks aimed to raise over Rs 550 crore by selling fresh shares, but later adjusted this to Rs 445 crore. The offer-for-sale (OFS) component has also been revised, reducing from 67.59 shares to 33.79 shares.
Stakeholders such as NS Niketan LLP, SNS Infrarealty LLP, and Space Solutions India Pte. Ltd are expected to divest their holdings through the OFS.
Out of the funds raised, approximately Rs 226 crore will be allocated for capital expenditures related to security deposits and fit-outs in new centers, Rs 114 crore will be dedicated to loan repayments, and the remainder will support general business operations.
As per the company’s RHP, operating revenue surged to Rs 1,374.05 crore last financial year, compared to Rs 1,039.36 crore in FY24.
Currently, the Gurugram-based firm operates across 48 locations with a total seating capacity exceeding 1.9 lakh.
Leading the IPO are JM Financial, BOB Capital Markets Limited, IIFL Capital Services, and Kotak Mahindra Capital Company Limited, while MUFG Intime India Pvt Ltd serves as the registrar.
Point of View
Smartworks' widening losses present a crucial narrative for investors and stakeholders alike. As the company prepares for its IPO, it remains to be seen how these financial challenges will influence market perception and investor confidence. The Nation always emphasizes the importance of transparent financial reporting and strategic planning in fostering trust and stability in the investment community.
NationPress
21/07/2025
Frequently Asked Questions
What are Smartworks' reported losses for FY25?
Smartworks has reported losses of Rs 63.17 crore for FY25, a rise of Rs 13.22 crore compared to FY24.
When does the Smartworks IPO open for public subscription?
The Smartworks IPO opens for public subscription on July 10 and closes on July 14.
What is the price band for the Smartworks IPO?
The price band for the Smartworks IPO is fixed between Rs 387 and Rs 407.
How much capital is Smartworks aiming to raise through the IPO?
Smartworks initially aimed to raise over Rs 550 crore but has now reduced this target to Rs 445 crore.
What will the raised funds be used for?
The funds will be allocated for capital expenditures, loan repayments, and general business needs.
