In a significant development for Smartworks Coworking Spaces Limited , the Supreme Court of India has dismissed an appeal challenging the company's initial public offering (IPO), effectively clearing a legal hurdle for the firm.

Legal Challenge Resolved

The Supreme Court, on August 25, 2025, rejected an appeal filed by Infrastructure Watchdog against a Securities Appellate Tribunal (SAT) order related to Smartworks' IPO. This appeal was contesting the SAT's decision concerning the company's public offering, which was initially disclosed in Smartworks' prospectus dated July 14, 2025.

Case Background

The legal proceedings involved Smartworks' promoters, including Neetish Sarda, NS Niketan LLP, and SNS Infrarealty LLP, as parties to the case. The company had previously filed multiple intimations regarding this litigation between July and August 2025, keeping investors and regulatory bodies informed about the ongoing legal challenge.

Company's Disclosure

In compliance with regulatory requirements, Smartworks Coworking Spaces Limited issued an update on the litigation under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The company's disclosure, signed by Company Secretary and Compliance Officer Punam Dargar, provided details of the Supreme Court's dismissal of the appeal.

Implications for Smartworks

The dismissal of this appeal by the Supreme Court marks a significant milestone for Smartworks Coworking Spaces Limited. It effectively removes a potential obstacle to the company's IPO process, potentially paving the way for the firm to proceed with its public offering plans.

This development is likely to be viewed positively by potential investors and market observers, as it resolves a key legal uncertainty surrounding the company's public offering. However, it's important to note that the specific impact on Smartworks' IPO timeline or terms has not been disclosed in the available information.

As the coworking space industry continues to evolve, particularly in the wake of changing work patterns, the resolution of this legal challenge could position Smartworks to capitalize on market opportunities through its planned public offering.

Investors and market participants will likely keep a close eye on further developments regarding Smartworks' IPO plans following this legal clarification.

Smartworks Coworking Spaces Limited has announced a significant change in its investment portfolio. The company has reduced its ownership stake in Clean Max DOS Private Limited ("Clean Max") from 24.82% to 9.08%, resulting in Clean Max no longer being classified as an associate company of Smartworks Coworking.

Transaction Details

The stake dilution transaction was executed on August 21, 2025, as per the company's filing with the stock exchanges. Smartworks Coworking received a net consideration of INR 99,07,807.00 from the sale of its shares in Clean Max.

Impact on Company Status

As a result of this reduction in shareholding, Clean Max has ceased to be classified as an Associate of Smartworks Coworking under the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This change in status reflects the decreased influence of Smartworks Coworking in Clean Max's operations and decision-making processes.

Buyer Information

The shares were acquired by Clean Max Enviro Energy Solutions Limited (formerly Clean Max Enviro Energy Solutions Private Limited). Smartworks Coworking has confirmed that the buyer does not belong to the promoter, promoter group, or group companies of Smartworks.

Regulatory Compliance

The company has stated that this transaction does not fall under related party transactions and is not part of any scheme of arrangement. The expected date of completion for this sale is within one week from the agreement date.

Company Background

Smartworks Coworking Spaces Limited, formerly known as Smartworks Coworking Spaces Private Limited, is a provider of flexible workspace solutions. The company's registered office is located in New Delhi, with its corporate office in Gurgaon, Haryana.

This strategic move by Smartworks Coworking to reduce its stake in Clean Max may be part of the company's broader portfolio management strategy. However, the specific reasons for the stake reduction were not disclosed in the regulatory filing.