Smartworks Coworking eyes Rs550 cr via IPO

New Delhi: Smartworks Coworking Spaces Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The proposed initial share sale is a combination of a fresh issue of equity shares worth Rs550 crore and an Offer For Sale (OFS) of 67.59 lakh shares by promoters, according to the Draft Red Herring Prospectus (DRHP). The city-based company may consider raising Rs110 crore through a pre-IPO placement. If such placement is undertaken, the amount raised will be deducted from the total fresh issue size. Proceeds from the fresh issue to the tune of Rs282.30 crore will be used for capital expenditure related to the fit-outs in new centres and security deposits for these new centres, Rs140 crore will be allocated for payment of loans and the remaining funds will be utilized for general corporate purposes.