Smartworks Coworking Files Draft Papers To Raise Funds Via IPO

Smartworks Coworking Space Ltd. filed its preliminary papers with the Securities and Exchange Board of India on Friday to raise funds through an initial public offering. The proposed public offering consists of a fresh issue of Rs 550 crore and an offer-for-sale component consisting of 67.6 lakh shares of face value Rs 10 each, according to the draft red herring prospectus.

According to the DRHP, the company may consider raising Rs 110 crore through a pre-IPO placement. If such a placement is undertaken by the Delhi-based company, then the said amount will be reduced from the total fresh issue size.

NS Niketan LLP and SNS Infrarealty LLP will be among the promoters selling shareholders. Space Solutions India Pte. is the investor selling shareholders. JM Financial Ltd., BOB Capital Markets Ltd., IIFL Securities Ltd. and Kotak Mahindra Capital Co. will be the book-running lead managers for the issue.

Net proceeds from the issue amounting to Rs 282.3 crore will be used to finance capital expenditures and security deposits. A total of Rs 140 crore will be used for the payment of loans and the remaining funds will go towards general corporate purposes.

Smartworks Coworking Spaces is a platform for office experiences and managed campuses. The company specialises in leasing large, bare-shell properties in prime locations. They also transform them into fully serviced, tech-enabled campuses with modern amenities.

The company caters to businesses of all sizes, with a focus on cities like Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram and Chennai.