Smartworks Coworking Spaces files DRHP with SEBI to raise funds via IPO; check details

Smartworks Coworking Spaces Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO). The company is a prominent platform offering managed campuses and office experiences.

It specialises in taking over big, empty shell properties in desirable locations and turning them into fully furnished, technologically advanced campuses with all the luxuries of today's universities.

With cafeterias, sports areas, gyms, childcare facilities, medical centres, and more, these campuses provide a contemporary and appealing work atmosphere. While the organisation serves various kinds of businesses, its specialty is serving mid-to-large enterprises with more than 300 seats. Bengaluru, the Mumbai Metropolitan Area, Hyderabad, Gurugram, and Chennai are among the places where the firm is mostly located.

Smartworks Coworking Spaces IPO details

The DRHP states that the proposed initial share sale consists of an offer for sale (OFS) by promoters of 67.59 lakh shares and a new issue of equity shares valued at ₹550 crore.

The proceeds of the fresh issue, totalling ₹282.30 crore, will be used for security deposits and capital expenditures associated with the fit-out of new centres. Another ₹140 crore will be set aside for loan repayment, and the remaining funds will be used for general corporate purposes.

In the OFS, investors Space Solutions India Pte (formerly known as Lisbrine Pte) would sell 5,159,480 shares, with promoters NS Niketan LLP offloading 980,000 shares, and SNS Infrarealty LLP selling 620,000 shares.

The IPO process is managed by JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd, and Kotak Mahindra Capital Company Ltd.

Smartworks Space Pte. Ltd. and Keppel Real Estate Services Pte Ltd made an agreement on March 27, 2024. The agreement involves the acquisition of property, plant, and equipment, customer deposits, and contracts with customers and vendors related to two co-working centres in Singapore. The total consideration for this acquisition is USD 2.085 million ( ₹17.46 crore). The transaction was completed on May 28, 2024, in accordance with the closing conditions specified in the agreement. It's important to note that there were no business processes, except for ancillary processes, acquired as part of this arrangement.

The company's listed peer is Awfis Space Solutions Ltd. The company serves a wide range of clients, including both Indian corporations and multinational companies. Some of our notable clients are 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. Several clients have long-standing contractual agreements with the company at various locations.

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