IndiQube Files DRHP For INR 850 Cr IPO

Managed office space provider IndiQube Spaces has filed its DRHP with markets regulator Securities and Exchange Board of India (SEBI) for INR 850 Cr initial public offering (IPO).

The company’s IPO will comprise a fresh issue of shares worth up to INR 750 Cr and an offer for sale (OFS) of up to INR 100 Cr. 

Promoters and cofounders, Rishi Das and Meghna Agarwal, will be offloading some of their shares via the OFS. 

ICICI Securities and JM Financial are the book running lead managers for the issue. The company’s shares will be listed on the BSE and the NSE.

IndiQube plans to utilise INR 462.6 Cr from the net proceeds from the fresh issue to establish new centres, INR 100 Cr to repay certain borrowings, and the remaining amount for general corporate purposes.

The company’s net loss jumped 72% to INR 341.51 Cr in FY24 from INR 198.11 Cr in the previous fiscal year. Revenue from operations during the fiscal year under review stood at INR 867.66 Cr, up 44% from INR 601.28 Cr in FY23. 

For the three-months period ended June 30, 2024 (Q1 FY25), its loss after tax stood at INR 42.04 Cr on an operating revenue of INR 251.30 Cr. 

In a statement, IndiQube said that its EBITDA stood at INR 263.4 Cr in FY24 and INR 153 Cr in Q1 FY25.

Founded in 2015, IndiQube is a managed office space provider that offers ‘office in a box’ experience to clients, encompassing workspace design, interior build out and a plethora of B2B & B2C services leveraging technology.

The development comes almost three months after Inc42 reported that the Bengaluru-based company was in advanced discussions to finalise the merchant bankers for its IPO. 

In November, IndiQube’s board approved a resolution to change its name to “IndiQube Spaces Limited” from “IndiQube Spaces Private Limited”. 

The company claims to manage a portfolio of 103 centres across 13 cities, covering 7.76 Mn sq ft of area under management (AUM) in built-up area with a total seating capacity of 1.72 Lakh as of June 30, 2024. 

It counts Myntra, upGrad, Zerodha, No Broker, Redbus, Juspay, Perfios, Moglix, Ninjacart, among its clients. 

IndiQube is backed by WestBridge Capital, Helion Ventures’ Ashish Gupta, and Aravali Investment Holdings. Notably, barring the cofounders, none of the existing backers are offloading shares via the OFS. 

With this, IndiQube has become the third company in the coworking space segment which has filed for IPO following the listing of Awfis in May this year. While SEBI approved the DRHP of Smartworks, it is yet to give its go-ahead to DevX’s IPO bid. 

Besides, the likes of Innov8, 91springboard, Spring House, Incuspaze and COWRKS are also looking to go for an IPO soon. An increase in the cost of office space and the increasing number of new-age tech companies needing office spaces is fuelling the growth of such coworking space providers.