Smartworks Coworking Spaces, the Gurugram-based managed campus operator backed by global asset manager Keppel, has filed a Draft Red Herring Prospectus (DRHP) with SEBI, seeking to raise funds via an initial public offering (IPO).
The IPO will consist of a fresh issue of equity shares worth Rs 550 crore and an offer-for-sale (OFS) of 67.59 lakh shares by existing shareholders.
The OFS will involve promoters NS Niketan LLP and SNS Infrarealty LLP selling 16 lakh shares, while Space Solutions India Pte, formerly known as Lisbrine Pte, will offer 51.59 lakh shares.
Ahead of the IPO, Smartworks plans to raise Rs 110 crore through a pre-IPO placement. Should this placement occur, the amount will be deducted from the fresh issue. Currently, Smartworks’ promoters hold 69.19% of the company, while public shareholders, including Space Solutions India with a 19% stake and Ananta Capital Ventures Fund with a 1.08% stake, own the remaining 30.81%.
Since 2019, Smartworks has been backed by investors like Keppel, which owns Space Solutions India Pte. In 2019, the company raised Rs 177.22 crore by issuing compulsorily convertible preference shares (CCPS) to Space Solutions India. More recently, in 2024, Smartworks mobilized Rs 168 crore via private placements from Space Solutions India, Ananta Capital Ventures Fund 1, Plutus Capital, and other investors.
The company intends to utilize Rs 140 crore from the fresh issue proceeds to repay debt, Rs 282.3 crore for fit-outs and security deposits for new centers, and the remaining funds for general corporate purposes.
As of March 2024, Smartworks operates in 13 cities, including Bengaluru, Pune, Hyderabad, Gurugram, Mumbai, Noida, and Chennai, with 41 centers covering a total super built-up area (SBA) of 8 million square feet.
JM Financial, BOB Capital Markets, IIFL Securities, and Kotak Mahindra Capital Company have been appointed as the book-running lead managers for the issue.
