Smartworks IPO subscribed 20% so far on Day 1, led by NII, retail investors - Check GMP, other key details

martworks IPO sees robust subscription. 

Smartworks initial public offer (IPO) got subscribed 20 percent so far on the first day of share sale on July 10. Smartworks Coworking Spaces received bids for 20.66 lakh shares against 1.04 crore shares on offer, according to data available with the NSE at around 12: 30 p.m.

The quota for Retail Individual Investors (RIIs) attracted 26 percent subscription, while the non-institutional investor part got subscribed 32 percent. The company has raised Rs 173.64 crore from anchor investors.

Smartworks Coworking Spaces hit the capital market on July 10 to launch its IPO for raising nearly Rs 600 crore as the company intends to expand its business and reduce debt. The company has fixed a price band of Rs 387-407 per share for its IPO, which will close on July 14.

At the upper end of the price band, the company's IPO size is now estimated at Rs 583 crore, with a market valuation of about Rs 4,645 crore.

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Gurugram-based Smartworks, one of the leading managed flexible office space providers, currently has 48 operational co-working centres with over 1.9 lakh seating capacities.

Smartworks IPO GMP

According to platforms tracking the grey market activities, the shares of Smartworks Coworking Spaces are commanding a GMP of about 8 percent in the unregulated market. Investorgain quoted a GMP of Rs 33 for the shares of the company, indicating a listing gain of 8.11 percent.

Smartworks IPO: Should you subscribe?

Gaurav Garg, Lemonn Markets Desk, noted "While Smartworks demonstrates impressive revenue growth, scale, and operational efficiency, the company is currently in its growth phase and yet to achieve profitability."

"Its fixed-lease model and high client concentration present certain risks in the near term. Given the competitive landscape and the presence of already-profitable listed peers like Awfis, we believe it may be prudent to adopt a wait-and-watch approach. Investors can consider tracking the company’s post-listing performance and path to profitability as potential indicators for future investment opportunities," he added.

Shares of the company will be listed on July 17, while the allotment is expected to take place on July 15.

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