Smartworks IPO Records 50% Subscription on Opening Day 1

On the first day of bidding, Smartworks Datalabs’ IPO was 50% subscribed, with non-institutional investors (NIIs) taking the lead.  Bids for 52.25 lakh shares were submitted in response to the public issue, compared to 1.04 crore shares available.

The allocation set aside for NIIs was fully subscribed, with bids amounting to 22.14 Lakh shares in response to the 22.17 Lakh shares available.

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Bids for retail investors’ portion amounted to 29.56 lakh shares, compared to 51.73 lakh shares available, resulting in a subscription rate of 57%.

Employees placed bids for 49.9K shares from the pool of 1.07 lakh shares set aside for them.  This indicated a 47% subscription rate among employees.

The participation of qualified institutional buyers (QIBs) in bidding was minimal, as they submitted only 5,220 bids for a total reserve of 29.03 lakh shares.

The managed workspace provider Smartworks had a sluggish beginning to its IPO, with the issue being subscribed to 17% by noon on the initial day of bidding.

BSE data indicates that the IPO garnered bids for 17.22 lakh shares, while 1.04 crore shares were available.

The shares allocated for non-institutional investors (NIIs) and employees experienced the greatest demand, with both segments being 25% subscribed.

NIIs bid for 5.6 lakh shares, while 22.17 lakh shares were reserved for them; employees, on the other hand, placed bids for 26,532 shares out of a total of 1.07 lakh shares available.

Retail investors placed bids for 11.31 lakh shares out of the 51.73 lakh available, resulting in a subscription rate of 22%.

As is usually the case, qualified institutional buyers (QIBs) exhibited a lukewarm reaction on the opening day. They submitted bids for just 3,492 shares out of the 29 Lakh shares available.

For its IPO, Smartworks has established a price range of INR 387 to INR 407. This includes a fresh share issue of up to INR 445 Cr and an OFS component of up to 33.79 Lakh shares.  Bidding will end on July 14, and the company’s shares are anticipated to be listed on July 17.

Should the price band be fully exploited, Smartworks will have a valuation of roughly INR 4,650 Cr (approximately $540 Mn).

The funds gained from the IPO will be utilized to pay off debts, support capital expenditures for security deposits, and facilitate the development of new centers.

In its anchor round yesterday, Smartworks secured INR 173.64 Cr from Tata Mutual Fund, Baroda BNP Paribas, Trust Mutual Fund, Aditya Birla Sun Life, Axis Mutual Fund, SBI General Insurance, Societe Generale, and Buoyant Capital.

Smartworks, established in 2016 by Neetish Sarda and Harsh Binani, operates as a managed workspace provider.  It acquires large properties from owners, transforms them into campuses, and subsequently leases them to major corporations.  It currently oversees 10 million square feet of space, with an average lease duration of 48 months.

In addition to leasing, Smartworks generates a minor portion of its revenue from services like meeting rooms, internet access, parking, electricity, and other amenities used by clients.

Financially, its net loss in FY25 increased by 26.5% YoY to INR 63.2 Cr, while operating revenue rose by 32% YoY to INR 1,374 Cr.  The management of Smartworks stated that the company expects to reach breakeven at the unit-building level within the next 12 months.