Bengaluru-based IndiQube files DRHP with SEBI for Rs 850 crore IPO

IndiQube, a Bengaluru-based managed workspace solutions provider, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India.

The proposed initial public offering is valued at Rs 850 crore, comprising a fresh issue of shares worth Rs 750 crore and an offer for sale (OFS) of Rs 100 crore by the company’s co-founders, Rishi Das and Meghna Agarwal.

IPO details

1. Fresh Issue: Rs 750 crore  
2. Offer for Sale (OFS): Rs 100 crore  
3. Rishi Das: Rs 50 crore  
4. Meghna Agarwal: Rs 50 crore  

No external shareholders are participating in the OFS, underscoring the founders’ pivotal role in the offering. The equity shares are expected to be listed on the National Stock Exchange and the Bombay Stock Exchange.

Shareholding structure

1. Anshuman Das: 25.32% (largest shareholder)  
2. Aravali Investment Holding: 22.07%  
3. WestBridge Capital: 5.79%  
4. Carenet Technologies: 5.15%  
5. Hirepro Consulting: 2.15%  
6. Co-founders (Rishi Das and Meghna Agarwal): 37.92% combined  

WestBridge Capital and Ashish Gupta are key backers of the company, which was incorporated in 2015.

Use of Funds

According to the DRHP, IndiQube plans to use the net proceeds from the fresh issue for:

1. Establishment of New Centers: Rs 462.6 crore  
2. Repayment or Prepayment of Certain Borrowings: Rs 100 crore  
3. General Corporate Purposes  

ICICI Securities and JM Financial are the book-running lead managers for the issue.

IndiQube's presence

IndiQube manages 103 centres across 13 cities, covering 7.76 million square feet as of June 30, 2024. Its total seating capacity stands at 172,451.

The company serves a wide range of clients, from global capability centers (GCCs) and Indian corporates to unicorns and startups across various sectors. 

Its core offering, IndiQube Grow, provides plug-and-play workspaces with interiors, technology, facility management and value-added services. The company also runs four additional verticals:

1. IndiQube Bespoke
2. IndiQube One
3. MiQube 
4. IndiQube Cornerstone

Financial Performance

1. Q1 FY25 Revenue: Rs 242 crore  
2. Losses stood at Rs 42 crore  
3. FY24 Revenue: Rs 830 crore (up from Rs 580 crore in FY23)  
4. Losses increased to Rs 341 crore, up from Rs 198 crore in FY23  
5. Total Income in FY24: Rs 867.6 crore (compared to Rs 601.2 crore in FY23)  
6. FY24 EBITDA: Rs 263.4 crore  
7. Q1 FY25 EBITDA stood at Rs 153 crore  

Board expansion

IndiQube recently strengthened its board by appointing four independent directors, including one woman independent director. The new directors are:

1. Naveen Tewari: CEO and founder of the InMobi Group  
2. Avalur Gopalaratnam Muralikrishnan: A seasoned finance professional with 35 years of experience  
3. Rahul Matthan: Partner at Trilegal, with 30 years of legal expertise  
4. Sachi Krishana: An HR professional with 20 years of industry experience  

Flexible workspace market outlook

Flexible workspaces are becoming a key part of India’s commercial office market, driven by hybrid work models, cost efficiency and the need for scalability.

A CBRE report indicates flexible workspace stock in India has surpassed 79 million sq. ft., with Tier 1 cities accounting for about 72 million sq. ft. This figure is expected to reach nearly 124 million sq. ft. by the end of 2027. 

Bengaluru leads the way, with over 30% of the total flexible workspace stock among Tier 1 cities. IndiQube is among the leading operators in the city, running 60 centers spanning 5.04 million sq. ft. in area under management.