Smartworks debt at Rs 382 Cr in Apr-end; to cut loans using IPO fund

Smartworks Coworking Spaces' total consolidated debt stood at Rs 382 crore at the end of April, and it will utilise Rs 114 crore from the total proceeds of its forthcoming Initial Public Offering (IPO) to reduce borrowing.

Gurugram-based Smartworks, which currently has 48 operational centres with over 1.9 lakh seating capacities, will hit the capital market on July 10 to launch its IPO. It has fixed a price band of Rs 387-407 per share for its Rs 583 crore IPO, which will close on July 14.

"Our total outstanding borrowings as on April 30, 2025, were Rs 3,819.67 million, on a consolidated basis," the company said in a Red Herring Prospectus (RHP) filed with SEBI.

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

Out of the total proceeds from the fresh issue of shares, the company will use Rs 226 crore for capital expenditure related to the fit-outs in new centres and security deposits for these new centres.

It will utilise Rs 114 crore for payment of loans, and the remaining funds will be used for general corporate purposes.

Smartworks has posted a net loss of Rs 63.17 crore in the last financial year due to higher expenses than income. Its net loss stood at Rs 49.95 crore in the preceding 2023-24 financial year.

However, the revenue from operations rose to Rs 1,374.05 crore in the 2024-25 fiscal from Rs 1,039.36 crore in the preceding year.

"These losses were on account of our total income being lower than the expenses for the relevant fiscal," the company said, adding that it would aim to increase revenue levels and decrease proportionate expenses to achieve profitability.

Smartworks, one of the leading co-working operators in the country, takes on-lease office spaces from landlords and then sub-leases the areas to corporates.

It has an operational portfolio of 8.31 million square feet area while 0.7 million square feet is under fit-outs.

The company has taken on lease another 1.7 million square feet area from landlords, but it has not got possession to set up the centres.

The total portfolio will cross 10 million square feet, including the spaces under fit-outs and signed.