Smartworks raises $20 Mn from anchor investors

Managed office space provider Smartworks has raised Rs 174 crore (approximately $20 million) from anchor investors ahead of its initial public offering (IPO), which is set to open for subscription on July 10. 

The anchor round saw participation from a dozen institutional investors, including Tata Mutual Fund, Aditya Birla Sun Life, Axis Mutual Fund, and SBI General Insurance.

The company allotted 42.66 lakh equity shares at Rs 407 each to anchor investors, according to a Bombay Stock Exchange (BSE) filing. Other investors in the anchor book include Baroda BNP Paribas Mutual Fund, Trust Mutual Fund, Societe Generale, and Buoyant Capital.

The total IPO size of Smartworks is Rs 583 crore, out of which Rs 445 crore will come from issuing new shares, while the remaining amount will be raised through existing shareholders selling their shares. The proceeds will be used to fund capital expenditure for setting up new centers, repay or prepay certain borrowings, and for general corporate purposes.

Founded in 2016, Smartworks provides customized managed office spaces on a long-term lease basis to enterprises. It competes with players such as WeWork India, Awfis, and Table Space in the flexible office space segment.

According to the red herring prospectus, Smartworks operated 41 centers across 13 cities with over 8 million square feet space as of March 2024. The company has reported Rs 1,374 crore in revenue from operations in FY25 from Rs 1,039 crore in FY24. However, its net losses grew by 20% Rs 62 crore in FY25, compared to Rs 50 crore in FY25 

Smartworks IPO for subscription will be open for the public on  July 10 and close on July 14, 2025. The company has set a price band of Rs 387 to Rs 407 per share with a lot size of 36 shares, requiring a minimum investment of Rs 14,652 for retail investors.