Smartworks Coworking IPO: Growth, GMP, and What Investors Need to Know

IPO Overview & Price Band

Price Band: ₹387–407 per share

Issue Size: ₹583 crore (₹445 crore fresh issue + ₹138 crore offer for sale)

Purpose: Debt repayment, fit-outs for new centers, security deposits, and general corporate purposes

IPO Dates: July 10–12, 2025

Anchor Investment: ₹174 crore raised before public opening

Subscription Status

Day 1:

Overall: ~52%

Retail Individual Investors (RII): ~60%

Non-Institutional Investors (NII): ~1.04×

Qualified Institutional Buyers (QIB): ~0%

Day 2:

Overall: ~1.15×

RII: ~1.18×

NII: ~1.79×

QIB: ~0.63×

Grey Market Premium (GMP) Trend

Before IPO: ₹25–27

Day 1: ₹29

Day 2: ₹32

Final GMP: ₹19–₹20 (about 4.7%)

This means the stock may list at ₹426–₹427, showing ~5% premium over the upper band.

Why GMP Rose Despite Losses?

1. Aggressive cost-cutting through Project Lakshya

2. EBITDA break-even in the auto segment seen as a positive sign

3. Strong cash reserves and a clear path to profitability claimed by management

Key Takeaways

Positives: Strong client base, improving margins, and pre-IPO investor confidence

Risks: Loss-making status, limited QIB interest, potential volatility

Verdict: Worth watching for long-term investors; short-term listing gains likely to be modest (~5–7%) based on GMP

Investor Advice

✔️ For Long-term Investors: If you believe in the coworking space sector and the company’s enterprise-focused model, Smartworks could be a solid early-stage bet.

⚠️ For Short-term Traders: GMP suggests a small listing gain. Enter cautiously and consider booking profits early if the stock surges.

❌ Avoid if you're risk-averse or expecting large short-term profits, as listing gains are expected to be moderate.

Disclaimer: This is not financial advice. Investors should consult certified professionals or do their own research before investing in IPOs.