Smartworks Coworking IPO subscribed 50% on Day 1 of offer

New Delhi: The initial public offer of Smartworks Coworking Spaces Ltd got subscribed 50 per cent on the first day of share sale on Thursday.

The IPO received bids for 52,21,188 shares against 1,04,01,828 shares on offer, according to NSE data.

The portion for non-institutional investors got fully subscribed, while the quota for Retail Individual Investors (RIIs) garnered 57 per cent subscription.

Smartworks Coworking Spaces has raised Rs 173.64 crore from anchor investors.

The initial public offer (IPO) of Smartworks Coworking Spaces hit the capital market on Thursday to raise nearly Rs 600 crore as the company intends to expand its business and reduce debt.

The company has fixed a price band of Rs 387-407 per share for its IPO, which will close on July 14.

The size of the fresh issue has been reduced to Rs 445 crore from the earlier planned Rs 550 crore, while the Offer For Sale (OFS) by promoters has been cut to 33.79 lakh shares from 67.59 lakh shares.

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

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. The OFS proceeds will go to promoters.

Gurugram-based Smartworks, one of the leading managed flexible office space providers, currently has 48 operational co-working centres with over 1.9 lakh seating capacities.

JM Financial Ltd, BOB Capital Markets Ltd and IIFL Capital Services Ltd are the book-running lead managers to the offer.