Smartworks Coworking Spaces, which is backed by global asset manager Keppel, has filed preliminary papers with the capital markets regulator SEBI to mobilise funds through an initial public offering.
The IPO is a mix of fresh issuance of equity shares worth Rs 550 crore, and an offer-for-sale (OFS) of 67.59 lakh equity shares by the existing equity shareholders.
Promoters NS Niketan LLP and SNS Infrarealty LLP will be selling 16 lakh shares in the OFS, while the remaining 51.59 lakh shares will be sold by investor Space Solutions India Pte (formerly Lisbrine Pte).
The Gurugram-based largest managed campus operator may also intend to raise Rs 110 crore via pre-IPO placement, prior to filing of the Red Herring Prospectus with the Registrar of Companies (ROC). If the pre-IPO placement is completed, the said amount will be reduced from the fresh issue.
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Promoters hold 69.19 percent shares (on a fully diluted basis) in Smartworks, and the rest 30.81 percent is owned by public shareholders including Space Solutions India's 19 percent stake and Ananta Capital Ventures Fund's 1.08 percent shares.
The company has been supported by investors like Keppel (which owns Space Solutions India Pte) since 2019. In 2019, it had raised Rs 177.22 crore through issuance of CCPS (compulsorily convertible preference shares) to Space Solutions India.
In addition, in 2024, it has mobilised Rs 168 crore via private placements from Space Solutions India, Ananta Capital Ventures Fund 1, Plutus Capital, and other investors.
The company that compares with the solely listed peer Awfis Space Solutions will utilise Rs 140 crore out of the net fresh issue proceeds for repaying debt, Rs 282.3 crore for fit-outs in the new centres and for security deposits of the new centres, and the reminder IPO funds for general corporate purposes.
Also read: Real estate developer Kalpataru files draft papers with SEBI to raise Rs 1,590 crore via IPO
As of March 2024, Smartworks has a presence in 13 cities (including Bengaluru, Pune, Hyderabad, Gurugram, Mumbai, Noida and Chennai) comprising 41 centres with total SBA (super built-up area) of 8 million square feet.
JM Financial, BOB Capital Markets, IIFL Securities, and Kotak Mahindra Capital Company are acting as the book running lead managers to the issue.
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