Mumbai4 minutes ago
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The slowness of the primary market is broken. This week, companies like Google, L&T, Bridhstone and Philip Global provide a hotel -like office -like company ‘Smartworks’ to bet in the IPO. This issue will open on Thursday.
Investors will be able to bid till 14 July. The company’s target is to raise Rs 583 crore. The company’s operational income was Rs 1,374 crore in FY 2024-25. This is 32% more than an income of 1,039 crore in 2023-24.
According to a report by Real Estate Consultant CBRE, Smartworks is the largest branded office campus operator in the country. The company has added 28.3 lakh sq ft space in the last 2 years. Between 2023-2025 it shows compounded growth of 20.8% annually.
Company providing service in 14 cities
Harsh Binani, co-founder of Smartworks, says, ‘We have traveled a long and great journey from starting the company to bringing an IPO. When he went abroad for studies, he saw the concept of the smart office closely. In such an office, employees get a pleasant and positive energy environment. It also realized that there is no such concept in a fast -growing country like India. In 2016, with the intention of filling this empty space, he started landing it on the ground with Founder Nitish Sarada. During this time we also see two challenges of Kovid. Right now we are managing about 1 crore sq ft space in 14 cities of the country.
Business model: focus on strong companies, so that investors’ money remains safe
Binani said, ‘We give the client a hotel -like workpace. They have facilities ranging from gym, restaurant and grocery to laundry. We lease the land from the developers. It converts it to hi -tech and smart work stations and gives it to companies. We provide 5-10 seater smart cabins. These are leasing businesses, so we give space to the rapid emerging companies with big and strong balance sheets. Companies like Google, Percentage Systems, Grow and Make My Trip are our clients.
Income from operation doubles in 2 years
- The company is reducing the deficit by focusing on expansion. Last financial year the net deficit was 63 crore, which was 101 crore in FY 2023.
- The deficit as a percentage of income also reduced to 4.5%, which is better than 13.6% of two years ago.
- In FY 2025, the company’s income increased to Rs 1,374 crore, which was 711.4 crore in 2023. That is, income doubled in two years. It shows 38.98% compounded growth annually.
- In FY 2025, Adjustable EBITA (income from all expenses) was Rs 172.23 crore, which was 36.36 crore in 2023. During this period it shows 117.64% compounded growth annually.
Invested money returned in 32 months
It takes an average of 30-32 months for smartworks to earn money returned from the old, established office center. The average of this industry is 50 months. That is, the money of smartworks is increasing faster.
- Expenditure less, focus on quality: Smartworks spends ₹ 1,350 to prepare a square foot space. The daily expenditure of running it is just ₹ 34-36 per sq ft.
- Growth with his own money: In 2024, Smartworks raised more than Rs 743 crore cash from everyday functioning. This money is being used to repay new projects and rent liabilities. That is, the company does not depend on others for growth.
- Promoters trust: Promoters of the company have 65% stake. This shows that he trusts the future of his company. They are committed to run it for a long time. Large investors like Caple Limited and Deutha Bank have invested in it.
These big factor will support this business in future
- Hybrid, trend of distributed work model: Companies from various sectors are adopting hybrid-distributed work strategy. This model reduces advance capital investment and reduces operational overheads. This gives more time to focus on core business.
- Startups, Domestic Business Bounce: India’s growing startup ecosystem (more than 1.59 lakh recognized startups) and strong -capital domestic companies are promoting such business models.
- Global companies are opening offices in India: Global capability centers (GCC) are opening rapidly in India. There were 2,000 GCC in India in FY 2024. He employed 19 lakh people, which is more than 16.6 lakhs of FY 2023. These GCC earned more than Rs 2 lakh crore.
It is 40% higher than last year. The size of this market is estimated to reach 9.5 lakh crore rupees by 2030. By then the number of employees will increase to 25-28 lakhs. Office space companies like Smartworks will contribute a major contribution in fulfilling this demand.
