Smartworks IPO Makes Strong Market Debut with 7% Listing Premium

Smartworks IPO listing made a strong entry on the National Stock Exchange (NSE) today, opening at a 7% premium over its issue price. The company’s shares were listed at INR 436.10 per share on the BSE, a premium of 7.15% over the offering price of INR 407 per share, Moneycontrol reported.

Smartworks’ IPO listing was closely watched by analysts and market participants, especially after the company’s IPO received a strong subscription across all investor categories. On its first day of trade, Smartworks’ stock saw healthy volumes and was among the most actively traded new listings on the NSE.

Good Start for Smartworks on the NSE

Smartworks’ NSE price came in at INR 435 on its debut, reflecting optimism around the coworking space sector’s potential in India. Analysts noted that the 7% premium, while modest, is a positive sign in a market that’s been selective about new-age business models.

The total market capitalization of the company post-listing stood at ₹4,977.27 crore. Before the listing, the company had secured ₹173.64 crore from anchor investors.

Smartworks plans to use the IPO proceeds for business expansion and debt reduction. The company currently operates 8.99 million sq. ft. of leased and managed office space. The share listing slightly outperformed grey market expectations, which had anticipated gains of around 6%.

What’s Driving Investor Confidence?

Several factors contributed to Smartworks’ listing performance. First, the company has shown consistent growth in revenue over the past few years, thanks to rising demand for flexible office spaces. Many companies are now opting for managed workspaces to reduce costs and adapt to hybrid working models.

Second, Smartworks counts multiple large enterprises as clients and has a high occupancy rate across its centers. Its asset-light model allows scalability without high capital expenditure, something investors tend to favor in today’s volatile market.

Finally, the overall rebound in real estate and infrastructure plays has brought fresh attention to proptech startups. The company’s positioning as a premium managed office brand for enterprises helped its case during the NSE IPO listing.

What’s Next for Smartworks Stock?

Market experts believe that Smartworks’ stock could continue to gain if the company delivers strong quarterly performance and maintains its growth trajectory. However, they also advise retail investors to watch how the stock stabilizes over the next few weeks before making fresh entries.

Narendra Solanki, Head of Fundamental Research, Investment Services at Anand Rathi Shares and Stock Brokers, noted that Smartworks has expanded its managed space at a compound annual growth rate (CAGR) of 38.37% between 2020 and 2024, significantly outpacing the industry average of 23–24%. At the upper end of the IPO price band, the company is valued at a price-to-sales (P/S) ratio of 3.3x and an EV/EBITDA multiple of 9.7x, with a post-issue market capitalization of ₹4,644.8 crore.

He said, “Investors may consider holding the stock with a long-term perspective depending on their risk appetite and return expectations.”