Smartworks to Launch IPO to Clear Debt and Expand Operations

Smartworks Coworking Spaces plans to launch its IPO on July 10 to raise Rs 583 crore. The company will use Rs 114 crore to reduce its Rs 382 crore debt and Rs 226 crore for capital expenditures. Despite recording recent financial losses, Smartworks aims to grow its revenue and expand its operational portfolio.

Smartworks Coworking Spaces is set to enter the capital market with an Initial Public Offering (IPO) starting July 10, aiming to raise Rs 583 crore. The company, which currently operates 48 centers with a seating capacity exceeding 1.9 lakh, will utilize Rs 114 crore from the proceeds to reduce its Rs 382 crore consolidated debt.

The IPO price band is fixed between Rs 387-407 per share and will close on July 14. Apart from debt reduction, Smartworks plans to allocate Rs 226 crore for capital expenditures related to fit-outs in new centers, with a focus on long-term growth and profitability. The remaining funds will cover general corporate expenses.

Despite a net loss of Rs 63.17 crore last fiscal year, Smartworks reported a revenue increase to Rs 1,374.05 crore. The company's growth strategy includes expanding its operational portfolio, which stands at 8.31 million square feet with an additional 0.7 million square feet under fit-outs. With plans to secure another 1.7 million square feet, Smartworks aims to enhance its market presence substantially.

(With inputs from agencies.)