Flexible workspace provider Smartworks receives SEBI approval for IPO

Flexible workspace provider Smartworks, has received approval from the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).

As of March 31, 2024, Smartworks had established a presence in 13 cities with a portfolio comprising 41 centres spanning 8 million sq ft.

The company has also entered the international market with leasing of 35,000 sq ft space in Singapore.

Since 2019, Singapore-based Keppel Ltd. has been a prominent and longstanding investor in Smartworks, having invested $29 million in the company to date.

Smartworks, which recently raised Rs 168 crore (about $20.24 million) from investors including Keppel Ltd, Ananta Capital Ventures Fund I, Plutus Capital and various family trusts, will invest Rs 238 crore in the next three years in fit-out of the upcoming centres, it said.

The company’s proposed initial share sale is a combination of a fresh issue of equity shares worth Rs 550 crore and an offer for sale (OFS) of 67.59 lakh shares, according to its DRHP.Smartworks may consider raising Rs 110 crore through a pre-IPO placement, according to the DRHP. About Rs 140 crore will be kept for payment of loans and the remaining funds will be utilised for general corporate purposes.

With a portfolio of 8 million sq ft and 180,000 seats, the company reported Rs 1,039 crore revenue in FY24, a 46% growth from the previous year.

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