This means that the market participants may expect the shares of Smartworks Coworking Spaces to list at a premium on the NSE and BSE as well.
What does GMP mean?
GMP stands for Grey Market Premium. It refers to the premium amount at which shares of an upcoming IPO (Initial Public Offering) are trading in the unofficial or “grey” market before they are officially listed on the stock exchange.For example, if the IPO price of a company is Rs 100 and its GMP is Rs 30, it means the shares are being traded at Rs 130 in the grey market. GMP reflects investor sentiment and expectations about the listing price. However, it is unofficial, not regulated by SEBI, and can be speculative or volatile.
Is it always correct?
GMP, or Grey Market Premium, is not always accurate. It is an unofficial and unregulated indicator based on limited trades and market sentiment, not on actual fundamentals.Since it is driven by speculation, GMP can fluctuate widely and may not reflect the true demand or the eventual listing price of the IPO.There have been many instances where stocks have listed below or above the indicated GMP. Therefore, while GMP can give a rough idea of investor interest, it should not be relied upon as a definite predictor of IPO performance.
About Smartworks Coworking Spaces IPO
The IPO is a book-built issue of up to Rs 582.56 crore, comprising a fresh issue of Rs 445 crore (1.09 crore equity shares) and an offer for sale (OFS) worth Rs 137.56 crore (33.79 lakh shares). The proceeds from the fresh issue will be used for business expansion, debt repayment, and general corporate purposes.
Also read: ICICI Prudential AMC files for Rs 10,000 cr IPO; entirely an offer for sale by Prudential Corp
Smartworks Coworking Spaces IPO price band
The company has set the price band at Rs 387 to Rs 407 per share.
Smartworks Coworking Spaces IPO key dates
The issue will open for subscription on July 10 and close for bidding on July 14. The IPO allotment is expected to be finalised on July 15, 2025, and the stock is tentatively scheduled to be listed on July 17, 2025, on both BSE and NSE.
Should you subscribe to Smartworks Coworking Spaces IPO?
Smartworks is India’s largest managed campus operator with a leased portfolio of 8.9 million sq. ft. across 50 centres as of FY25. It operates in the fast-growing flexible workspace market, especially in Tier 1 cities, and has outpaced industry growth with a 38.3% CAGR from 2020–2024.
The company focuses on mid-to-large enterprises, which ensures longer client lock-ins and stable revenue. With fit-out and operating costs significantly lower than industry benchmarks, Smartworks runs a cost-efficient and scalable model. It is also shifting to an asset-light strategy through variable rental and management contracts, improving capital efficiency.
Additional revenue streams like value-added services and Fit-out-as-a-Service further strengthen its business.
Domestic brokerage firm Anand Rathi states that at the upper price band, the company is valued at P/S of 3.3x with EV/EBITDA of 9.7x and a market cap of Rs 46,448 million post issue of equity shares.
The analysts believe that the IPO is fully priced and recommend a “Subscribe-Long term” rating to the IPO.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
