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Smartworks Coworking Spaces IPO Day 3 Live: Smartworks Coworking Spaces' initial public offering, which is set to conclude today, Monday, July 14 has seen respectable subscription levels, primarily driven by Non-Institutional Investors (NIIs) and followed by retail investors.

Smartworks Coworking Spaces IPO was available for public subscription on Thursday, July 10. Smartworks Coworking Spaces IPO price band has been set between ₹387 and ₹407 per share, with a face value of ₹10. The company has indicated that 50% of the total offering is allocated for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.

The basis of share allotment for the Smartworks Coworking Spaces IPO is expected to be formalized on Tuesday, July 15. Refunds are scheduled to begin on Wednesday, July 16 and shares will be credited to the demat accounts of those who are successful in securing allotments on the same day as the refunds. The shares of Smartworks Coworking Spaces are likely to debut on the BSE and NSE on Thursday, July 17.

Smartworks Coworking Spaces Limited focuses on delivering customized managed workspace solutions, offering fully serviced office environments that are enhanced with technology, appealing designs, and essential amenities tailored to meet the specific needs of businesses and their employees.

The company serves mid-to-large enterprises, including Indian firms, multinational corporations, and startups, providing modern campuses that feature design, technology, and amenities such as cafeterias, fitness centers, childcare services, and healthcare facilities to support employee well-being.

Smartworks Coworking Spaces IPO subscription status was 4.27 on day 3, so far. The retail portion was subscribed 2.35 times, and NII portion has been booked 8.53 times, Qualified Institutional Buyers (QIBs) portion has received 4.53 times bids. The employee portion has been booked 1.88 times.

The company has received bids for 4,44,60,252 shares against 1,04,01,828 shares on offer, at 13:57 IST, according to data on BSE.

“While long-term prospects remain attractive, we believe the IPO is currently not favourable from a profitability and clarity standpoint. Hence, we assign an AVOID rating to the issue. Investors may consider re-evaluating post listing, once the company demonstrates sustainable bottom-line performance and improved transparency in its financial stability,” said the brokerage.

Smartworks Coworking Spaces IPO subscription status was 1.73 on day 3, so far. The retail portion was subscribed 1.71 times, and NII portion has been booked 3.21 times, Qualified Institutional Buyers (QIBs) portion has received 64% bids. The employee portion has been booked 1.50 times.

The company has received bids for 1,79,71,416 shares against 1,04,01,828 shares on offer, at 11:24 IST, according to data on BSE.

As per Geojit Research, the company's asset-light business model, capital efficiency achieved through flexible rental and management agreements, along with the expansion of new revenue channels (such as value-added services and fit-out as a service), which enhance profit margins, further solidify the business's future prospects. Therefore, the brokerage suggest a ‘Subscribe’ rating for long-term investment.

The firm has reduced the amount of its IPO. The new issue total has been adjusted to ₹445 crore, down from the earlier target of ₹550 crore, while the offer for sale (OFS) by the promoters has been lowered to 33.79 lakh shares from 67.59 lakh shares.

Of the total funds raised, around ₹226 crore will be allocated for capital expenditures related to fit-outs in new centers and security deposits for those centers, ₹114 crore will go towards repaying loans, and the remaining funds will be utilized for general corporate purposes.

Smartworks Coworking IPO GMP today or Smartworks Coworking Spaces IPO grey market premium is +20. This indicates Smartworks Coworking share price was trading at a premium of ₹20 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Smartworks Coworking share price was indicated at ₹427 apiece, which is 4.91% higher than the IPO price of ₹407.

According to the activities observed in the grey market over the past ten sessions, the IPO GMP is currently on the rise and is anticipated to have a strong listing. The minimum GMP recorded is ₹0.00, whereas the maximum GMP reaches ₹32, as noted by experts from investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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