Smartworks Coworking Spaces shares made a muted debut on the stock exchanges on Thursday, listing at a premium of nearly 7 percent over the IPO price. The Rs 583-crore initial public offer garnered 13.45 times subscription in the primary market between July 10-14 at a price band of Rs 387-407 per share.
Shares of Smartworks Coworking Spaces were listed at Rs 435 per share on the NSE, a premium of 6.88 percent.
On the BSE, the shares were listed at Rs 436.10 apiece, a premium of 7.15 percent. The total market capitalization post listing of the shares of the company stood at Rs 4,977.27 crore. The company had earlier raised Rs 173.64 crore from anchor investors.
Smartworks, which plans to use the proceeds for business expansion and debt reduction, is India's largest managed campus operator as of March 31, 2024, with 8.99 million sq ft of leased and managed area.
The share listing was marginally better than the expectation in the grey market which had priced in gains of about 6 percent.
Smartworks Coworking Spaces Shares: Should you buy, sell or hold?
Narendra Solanki, Head Fundamental Research – Investment Services, Anand Rathi Shares and Stock Brokers noted that Smartworks has grown its managed space at a compound annual growth rate (CAGR) of 38.37 percent between 2020 and 2024, surpassing the industry average of 23–24 percent. At the upper end of the price band, the company is valued at a price-to-sales (P/S) ratio of 3.3x and EV/EBITDA of 9.7x, with a post-issue market capitalisation of Rs 4,644.8 crore.
"Investors may consider holding the stock with a long-term perspective depending on their risk appetite and return expectations," he added.
Smartworks Coworking Spaces share listing: Here's what experts say
Gurugram-based Smartworks, one of the leading managed flexible office space providers, has 48 operational co-working centres with over 1.9 lakh seating capacities.
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