Smartworks Coworking Spaces Limited

Smartworks Coworking Spaces Limited is an office experience and managed Campus platform. As of March 31, 2024, they were the largest managed campus operator, amongst the benchmarked operators in terms of total stock, with a lease signed portfolio of 8.0 million square feet. They have leased, and they manage a total SBA of 8.99 million square feet as of March 31, 2025. They strive to make Enterprises and their employees in India more productive at work by providing value-centric pricing and superior office experience vis-à-vis traditional workspaces, with access to enhanced services and amenities. Company focuses on mid-to-large Enterprises and have built a growing Client base, which includes Indian corporates, MNCs operating in India and startups. They equip the Campuses with modern and aesthetically pleasing designs using their extensive design library, integrated proprietary technology solutions and amenities such as cafeterias, sport zones, Smart Convenience Stores, gymnasiums, crèches and medical centres.  Company's managed Campus platform consists of a total SBA of 8.99 million square feet across 50 Centres in 15 cities such as Bengaluru (Karnataka), Pune (Maharashtra), Hyderabad (Telangana), Gurugram (Haryana), Mumbai (Maharashtra), Noida (Uttar Pradesh) and Chennai (Tamil Nadu), with 2,03,118 Capacity Seats, as of March 31, 2025.  As on June 30, 2025, they have signed non-binding letters of intent/MoUs with Landlords for an additional SBA of 1.46 million square feet across three Centres in Pune (Maharashtra), Kolkata (West Bengal) (partially handed over to the extent of 0.02 million square feet which has been excluded) and Mumbai (Maharashtra). As on June 30, 2025, they have signed term sheets with Landlords in Gurugram for a Centre with a total SBA of 4,50,000 square feet under the variable rental business model, of which SBA of 33,504 square feet has been operationalised pursuant to agreements entered into by the Company with the Landlord and each of the respective Client(s). As of March 31, 2025, company's Operational Centres served 738 Clients occupying 1,52,619 Seats. Further, as on June 30, 2025 they had 728 Clients with 169,541 Seats, out of which 12,044 Seats were yet to be occupied at the Operational Centres by the respective Clients. So occupancy percentage as on 30.06.25 is 89.03%. They have also taken on lease two Centres in Singapore with a total SBA of 35,036 square feet and serve 83 Clients as on June 30, 2025. As per financial performance, Smartworks Coworking Spaces Limited has posted total income / net profits of Rs 744.07 Cr / (101.05) Cr (FY23), Rs 1,113.11 Cr / Rs (49.96) Cr (FY24) and Rs 1,409.67 Cr / (63.18) Cr (FY25). So as per previous financials data, company has shown good growth, but Company is not able to generate profit in last three fiscals. Issue is priced at a P/BV of 38.58 as per NAV of Rs 10.55/- as on 31.03.25. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, four lead managers JM Financial Limited, BOB Capital Markets Limited, IIFL Capital Services Limited and Kotak Mahindra Capital Company Limited are associated with this IPO, and have handled 116 IPOs in last three fiscals.  ( As on 12.07.25 ) As per financials, Smartworks Coworking Spaces Limited has shown good sales growth, RoNW is negative, So issue looks aggressively priced when compared with peers. Company is engaged in the business of office experience and managed Campus platform. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Neetish Sarda
• 2 Harsh Binani
• 3 Saumya Binani
• 4 NS Niketan LLP
• 5 SNS Infrarealty LLP
• 6 Aryadeep Realestates Private Limited