Smartworks Sets Ambitious IPO Amid Rising Revenue But Looming Losses

Smartworks Coworking Spaces is set to make waves in the stock market with its upcoming IPO scheduled for a July 10 launch. The move comes despite the company posting a net loss of Rs 63.17 crore for the last fiscal year, underlined by a notable increase in operational revenue reaching Rs 1,374.05 crore, up from Rs 1,039.36 crore the previous year.

According to the company's red herring prospectus, Smartworks has honed its business focus on revamping its financial strategies to ensure revenue increases and expense reductions to accelerate profitability. With 48 operational centers and over 1.9 lakh seating capacity, Smartworks continues to expand its footprint in the collaborative workspace industry.

The proposed IPO has seen a revised issue size with fresh proceeds reduced to Rs 445 crore, down from Rs 550 crore. These funds will be directed towards capital expenditure for new centers, loan repayments, and general corporate operations. As they prepare for market entry, Smartworks is increasing its asset portfolio to over 10 million sq ft.

(With inputs from agencies.)