Smartworks Coworking Spaces-backed by global asset manager Keppel, has filed preliminary papers with the capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The proposed initial share sale combines a fresh issue of equity shares worth Rs 550 crore and an Offer For Sale (OFS) of 67.59 lakh shares by promoters, as per the Draft Red Herring Prospectus (DRHP).
Promoters NS Niketan LLP and SNS Infrarealty LLP will offload 16 lakh shares in the OFS and investor Space Solutions India Pte (formerly Lisbrine Pte) will sell the remaining 51.59 lakh shares.
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The Gurugram-based campus operator may consider raising Rs 110 through a pre-IPO placement. If such placement is undertaken, the amount raised will be deducted from the total fresh issue size.
Currently, promoters own 69.19 per cent stake (on a fully diluted basis) in Smartworks and the remaining 30.81 per cent is owned by public shareholders including Space Solution India’s 19 per cent stake and Ananta Capital Ventures Fund’s 1.08 per cent stake.
In 2019, the company raised Rs 177.22 crore through the issuance of compulsorily convertible preference shares (CCPS) to Space Solutions India. In 2024, the company raised Rs 168 crore through private placements from Space Solutions India, Ananta Capital Ventures Fund 1, Plutus Capital, and other investors.
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Currently, Awfis Space Solutions is the only listed company in this segment. The company aims to utilize Rs 282.3 crore out of the net fresh issue proceeds for capital expenditure related to the fit-outs in new centres and security deposits for these new centres, Rs 140 crore will be allocated for payment of loans and the remaining funds will be utilized for general corporate purposes.
JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd and Kotak Mahindra Capital Company Ltd are responsible for managing the company's IPO process.
Smartworks Coworking Spaces Ltd is a leading platform for office experiences and managed campuses. The company has a presence in 13 cities (including Bengaluru, Pune, Hyderabad, Gurugram, Mumbai, Noida, and Chennai) comprising 41 centres with a total SBA (super built-up area) of 8 million square feet, as of March 2024. These campuses include cafeterias, sports zones, gyms, medical centres, and more, offering a modern and attractive work environment. The company caters to businesses of all sizes, with a focus on mid-to-large companies that need over 300 seats.
India's commercial office space was about 841.2 million square feet as of March 31, 2024. It is expected to grow at an annual rate of 6.71 per cent to 1,079.3 million square feet by the end of 2027, as per the draft papers.
(With inputs from PTI)
