As the countdown begins for the Smartworks Coworking Spaces IPO, set to open on July 10, 2025, the buzz around its ₹29 grey market premium (GMP) is grabbing everyone’s attention. But what’s behind this excitement, and why are investors so eager? Let’s break it down in simple terms.
What’s the Smartworks IPO All About?
Smartworks Coworking Spaces, a Gurugram-based company, is one of India’s top players in providing modern, tech-enabled office spaces. It transforms empty commercial properties into fully equipped campuses with amenities like cafeterias, gyms, and medical centers. As of March 31, 2025, Smartworks manages 8.99 million square feet across 50 centers in 15 cities, including Bengaluru, Mumbai, Hyderabad, and Chennai. It serves big names like Google and Philips, with 738 clients occupying 152,619 seats and an impressive 89.03% committed occupancy rate.
The IPO, valued at ₹582.56 crore, includes a fresh issue of ₹445 crore and an offer for sale of 33.79 lakh shares. Priced between ₹387 and ₹407 per share, it opens for subscription from July 10 to July 14, with a listing expected on July 17 on BSE and NSE. Investors can apply for a minimum of 36 shares, costing around ₹14,652 at the upper price band.
Why the ₹29 GMP Is Turning Heads
The grey market premium (GMP) of ₹29 means investors in the unofficial market are willing to pay ₹29 more than the IPO’s upper price of ₹407, estimating a listing price of around ₹436. This suggests a potential 7% gain on listing day, making it a hot topic among investors. The GMP surged from ₹0 on July 8 to ₹29 on July 9, showing a rapid rise in demand and confidence in Smartworks’ growth story.
This spike in GMP reflects strong investor interest, driven by Smartworks’ position as India’s largest managed campus operator and its focus on mid-to-large enterprises. The company’s 20.80% growth in managed space and 38.98% rise in revenue from FY23 to FY25 add to its appeal, despite reporting a net loss of ₹63.18 crore in FY25.
What’s Fueling the Hype?
Several factors are making Smartworks’ IPO a must-watch:
- Growing Demand for Flexible Workspaces: With companies increasingly opting for coworking spaces, Smartworks is well-placed to cash in on this trend. Its tech-enabled offices and value-added services like fit-out-as-a-service (FaaS) attract big corporations and startups alike.
- Strong Client Base: Serving 738 clients, including global giants, Smartworks has built trust and reliability. Its focus on long-term leases (10–15 years) ensures stable revenue streams.
- Efficient Operations: Smartworks recovers its fit-out costs in just 30–32 months for mature centers, faster than the industry average of 51–52 months. This efficiency signals smart financial management.
- Market Sentiment: The GMP’s jump to ₹29 reflects optimism in the grey market, where investors bet on listing gains. This buzz is drawing both retail and institutional investors to the IPO.
Should You Jump In?
While the ₹29 GMP is exciting, there are risks to consider. Smartworks reported losses of ₹63.18 crore in FY25, up from ₹49.96 crore in FY24, due to high expenses. Its heavy reliance on key cities like Pune, Bengaluru, Hyderabad, and Mumbai (75.19% of rental income) could be a concern if these markets face challenges. Experts suggest long-term investors may find value, but short-term players banking on GMP alone should be cautious, as grey market trends can be volatile.
What’s Next?
With the IPO opening on July 10 and anchor investor bidding on July 9, all eyes are on Smartworks. The funds raised will go toward repaying ₹114 crore in loans, spending ₹226 crore on new centers, and general corporate purposes. The allotment is expected on July 15, with shares credited to demat accounts by July 16.
The ₹29 GMP has put Smartworks Coworking Spaces in the spotlight, but will it live up to the hype on listing day? For now, investors are watching closely, eager to see if this coworking giant can deliver both workspace solutions and market returns.
Disclaimer: The grey market premium is unofficial and can change quickly. Always check the company’s financials and consult a SEBI-registered advisor before investing.
