Smartworks Coworking IPO Opens on July 10 With ₹4450 Million Fresh Issue

Smartworks Coworking Spaces Limited (“Smartworks” or “The Company”), proposes to open the Bid / Offer Period in relation to its initial public offer of the Equity Shares (“Offer”) on Thursday, July 10, 2025.

The Total Offer Size comprises a fresh issue of number of Equity Shares by the Company aggregating up to  ₹4,450 million  (the “Fresh Issue”) and offer for sale of up to 3,379,740 Equity Shares (“Offer for Sale”) by certain existing shareholders of the Company (the “Selling Shareholders”) (the “Total Offer Size”).

A discount of ₹ 37 per Equity Share is being offered to Eligible Employees bidding in the Employee Reservation Portion.

The Company proposes to utilise the Net Proceeds towards repayment/ prepayment/ redemption, in full or in part, of certain outstanding borrowings availed by the Company to the extent of ₹1,140 million, capital expenditure for fit-outs in the New Centres and for security deposits of the New Centres to the extent of ₹2,258.40 million and balance amount towards general corporate purpose  (the “Objects of the Offer”).

The Offer for Sale comprises up to 490,000 Equity Shares by NS Niketan LLP, up to 310,000 Equity Shares by SNS Infrarealty LLP (“Promoter Selling Shareholders”) and up to 2,579,740  Equity Shares by Space Solutions India Pte. Ltd. (formerly Lisbrine Pte Limited) (“Investor Selling Shareholders”) (collectively, the “Investor Selling Shareholders”).

The Anchor Investor Bid/Offer Period opens and closes on Wednesday, July 9, 2025. The Bid/Offer Period will open on Thursday, July 10, 2025 for subscription and close on Monday, July 14, 2025.

The Price Band of the Offer has been fixed at ₹387 to ₹407 per Equity Share. Bids can be made for a minimum of 36 Equity Shares and in multiples of 36 Equity Shares thereafter.

This Equity Shares are being offered through the Red Herring Prospectus of the Company dated July 4, 2025 filed with the Registrar of Companies, Delhi & Haryana at New Delhi.  (The “RoC”)

The Equity Shares to be offered through the Red Herring Prospectus dated July 4, 2025 are proposed to be listed on the stock exchanges being BSE Limited and National Stock Exchange of India Limited. For the purposes of the Offer, NSE is the Designated Stock Exchange. ”)

JM Financial Limited, BOB Capital Markets Limited, IIFL Capital Services Limited (formerly known as IIFL Securities Limited) and Kotak Mahindra Capital Company Limited are the book running lead managers to the Offer.

All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.

The Offer is being made in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBI ICDR Regulations. This Offer is being made through the Book Building Process in accordance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that the Company, in consultation with the Book Running Lead Managers may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (the “Anchor Investor Portion”). One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors (“Anchor Investor Allocation Price”) in accordance with the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion (other than Anchor Investor Portion) (“Net QIB Portion”).

Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs.

Further, (a) not less than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders (“Non-Institutional Portion”) (out of which one third shall be reserved for Bidders with Bids exceeding ₹ 0.20 million up to ₹ 1.00 million and two-thirds shall be reserved for Bidders with Bids exceeding ₹ 1.00 million, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of the Non-Institutional Portion, subject to valid Bids being received at or above the Offer Price); and (b) not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders (“RIBs”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All potential Bidders, other than Anchor Investors, are mandatorily required to participate in the Offer through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA Account (as defined hereinafter) and UPI ID in case of UPI Bidders (defined hereinafter), which will be blocked by the SCSBs or the Sponsor Banks, as the case may be, to the extent of their respective Bid Amounts. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. Further, Equity Shares will be allotted on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price (net of Employee Discount, if any). For details, see “Offer Procedure” on page 488 of the RHP.