Subscribe for Smartworks Coworking Spaces Ltd IPO; Geojit Financial Services

Geojit Financial Services, Smartworks Coworking Spaces Ltd

Smartworks Coworking Spaces Ltd (SCSL), incorporated in 2015, is India’s largest managed campus operator offering 8.99mn sq. ft. of leased and managed space across 50 centres in 15 cities (as of March 2025). Catering to mid-to-large enterprises, SCSL converts bare-shell properties into fully serviced, tech-enabled campuses featuring amenities like cafeterias, gyms, crèches, medical centres, and convenience stores to boost productivity and employee well-being. As of June 2025, it had a total capacity of 231,548 seats across 48 operational centres (190,421 seats), 2 under fit-out (15,042 seats), and 4 upcoming (26,085 seats). In India, flexible workspace stock across Tier 1 cities is expected to grow from 82–86 mn sq. ft. in CY24 to 140–144 mn sq. ft. by CY27, at a CAGR of 18–20%, supported by rising demand, operator expansion, and increasing availability of quality office supply.

Valuation and Outlook

Given its asset-light business model, capital efficiency through variable rental and management contracts, and the scale up of new revenue streams (like value-added services & fit–out as a service), which are margin accretive, further strengthen the business going forward. Hence, we recommend a ‘Subscribe’ rating on a long-term basis.