IndiQube to use IPO funds to add 3 million sq.ft. flexible workspaces over the next 3 years

IndiQube Spaces Limited, a managed workplace solutions company, plans to expand both the breadth and depth of its commercial real estate portfolio nationwide, adding 3 million square feet of flexible workspace over the next three years through funds raised from its initial public offering (IPO).

With this addition, IndiQube’s total assets under management are expected to reach 11.47 million square feet by fiscal year 2028. Bengaluru is projected to account for the bulk of the expansion, with 1.79 million square feet to be added over three years. The company’s assets under management in Bengaluru alone are expected to reach 7.22 million square feet.

Bengaluru remains the country’s largest flexible workspace market, with an estimated 29 million square feet of such stock as of the first quarter of calendar year 2025 (Q1CY25). Flexible workspace operators are also looking to grow in micro-markets such as the Central Business District, Extended Business District, Outer Ring Road, North Bengaluru and Whitefield.

IndiQube’s Chennai portfolio is expected to grow by 740,000 square feet over the period, while its holdings in Tier II cities are projected to increase by 360,000 square feet.

As of March 31, 2025, IndiQube managed a portfolio of 115 centers across 15 cities, covering 8.40 million square feet of assets under management with a total seating capacity of 186,719. Bengaluru alone accounted for 65 centers, spanning 5.43 million square feet of assets under management.

In the Tier I category, IndiQube has a presence in eight cities, including Bengaluru, Pune, Chennai, Mumbai, Noida, Gurugram and Hyderabad.

IndiQube's IPO size

IndiQube's IPO comprises a fresh issue of Rs 650 crore and an offer for sale of Rs 50 crore. Of the fresh issue component, Rs 462.6 crore has been earmarked to fund capital expenditures for new centers.

As part of its two-fold growth strategy, IndiQube plans to expand into additional cities, including emerging non–Tier I markets. It also aims to deepen its presence in existing cities by acquiring more properties in key micro-markets. The company follows a hub-and-spoke model, acquiring smaller properties—spokes—in new geographies to gauge demand and establish a local presence. Once these properties achieve breakeven and demonstrate viability, IndiQube scales up by investing in larger properties (hubs) in those markets.

IndiQube plans to add 1.29 million square feet, 1.24 million square feet and 0.54 million square feet through new centers in fiscal years 2026, 2027 and 2028, respectively. It proposes to spend an estimated Rs 194.4 crore, Rs 186.8 crore and Rs 81.3 crore in those fiscal years, respectively, toward the establishment of new centers.

The total flexible workspace stock is forecasted to grow to approximately 140 - 144 Mn sq. ft. across Tier 1 cities by the end of CY2027 with a Total Addressable Market projected to reach Rs 730 - 960 Bn by the same period.

The total flexible workspace stock in Tier I cities is forecast to grow to approximately 140 million to 144 million square feet by the end of calendar year 2027, with the total addressable market projected to reach Rs 730 billion to Rs 960 billion by the same period.