IndiQube Files for ₹850 Crore IPO to Expand Managed Workspaces

IndiQube Spaces, a company specializing in managed workplace solutions, aims to revolutionize traditional office setups with comprehensive, sustainable, and technology-enabled offerings. The firm has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to initiate fundraising through an Initial Public Offering (IPO).

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The company’s promoters, Rishi Das and Meghna Agarwal, have the backing of prominent venture capital entity WestBridge Capital and notable investor Ashish Gupta.

The Bengaluru-based organization’s IPO consists of a Fresh Issue of equity shares amounting to ₹750 crore and an Offer for Sale (OFS) worth ₹100 crore, with the Promoter Selling Shareholders, Rishi Das and Meghna Agarwal, divesting their equity holdings.

IndiQube plans to allocate the net proceeds from the Fresh Issue towards funding capital expenditures for the establishment of new centers (₹462.6 crore), repaying or prepaying certain company borrowings (₹100 crore), and for general corporate purposes.

IndiQube’s client roster features renowned GCCs, corporates, unicorns, and start-ups, with names such as Myntra, upGrad, Zerodha, NoBroker, Redbus, Juspay, Perfios, Moglix, Ninjacart, Siemens, and Narayana Health.

The company’s flagship offering, IndiQube Grow, provides fully integrated plug-and-play workspaces, encompassing interior design, technology integration, facility management, and value-added services. To cater to specialized client demands, IndiQube has also introduced four additional verticals: IndiQube Bespoke, IndiQube One, MiQube, and IndiQube Cornerstone.

In FY24, IndiQube reported total revenue of ₹867.6 crore, a significant increase from ₹601.2 crore in FY23. The company’s EBITDA for FY24 stood at ₹263.4 crore, with Q1 FY25 EBITDA alone reaching ₹153 crore.

IndiQube has recently expanded its Board of Directors, appointing four Independent Directors, including one woman. The new members include Naveen Tewari, founder and CEO of InMobi Group; Avalur Gopalaratnam Muralikrishnan, a seasoned finance professional with over 35 years of experience; Rahul Matthan, a legal expert and partner at Trilegal with 30 years of experience; and Sachi Krishana, a human resources professional with two decades of expertise.

The demand for flexible workspaces is on the rise, driven by hybrid work models, cost optimization, flexibility needs, evolving workspace planning, and changes in work culture. According to a CBRE report, India’s flexible workspace inventory exceeds 79 million square feet, with Tier 1 cities contributing over 72 million square feet. This stock is projected to grow to approximately 124 million square feet by the end of 2027.

Bengaluru leads India’s commercial office and flexible workspace markets, representing over 30% of the total flexible workspace supply among Tier 1 cities. IndiQube is a prominent player in Bengaluru, managing 60 centers across 5.04 million square feet.

The IPO’s Book Running Lead Managers are ICICI Securities Limited and JM Financial. The equity shares will be listed on the BSE and NSE.

Founded in 2015, the company currently operates a portfolio of 103 centers across 13 cities, encompassing a managed area of 7.76 million square feet (super built-up) and a seating capacity of 172,451 as of June 30, 2024. Its clientele includes a mix of Global Capability Centers (GCCs) and Indian enterprises.