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IndiQube Plans Rs 850 Crore IPO to Expand and Capture Market Share in India’s Thriving Workspace Sector IndiQube, a leading provider of managed workspaces in Bengaluru, is taking
IndiQube Plans Rs 850 Crore IPO to Expand and Capture Market Share in India’s Thriving Workspace Sector
IndiQube, a leading provider of managed workspaces in Bengaluru, is taking a major step towards expanding its business. The company has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), announcing plans for an initial public offering (IPO) worth Rs 850 crore. The IPO is aimed at fueling growth and solidifying IndiQube’s position as a top player in the rapidly growing flexible workspace market in India.
With the flexible workspace market growing at a fast pace, IndiQube’s IPO is one to watch. Let’s break down what the IPO entails, why it matters, and what investors can expect.
IndiQube’s IPO is valued at Rs 850 crore, and it will consist of two parts:
their vision for the company’s future.
Once the shares are sold, IndiQube’s equity will be listed on major stock exchanges in India, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Before the IPO, IndiQube’s shareholding structure is divided as follows:
The co-founders hold the majority stake, and it’s clear they are at the helm of the company’s future growth.
IndiQube has outlined specific goals for how it plans to use the funds raised from this IPO. Here’s a breakdown:
By investing in these areas, IndiQube aims to stay competitive in a sector that is becoming increasingly attractive to businesses of all sizes.
As of June 2024, IndiQube operates 103 centers across 13 cities in India, covering a massive 7.76 million square feet of space. The company has a total seating capacity of 172,451, catering to a diverse range of clients. These include global capability centers (GCCs), unicorns, startups, and well-established Indian corporates.
IndiQube’s flagship offering, IndiQube Grow, provides fully-equipped workspaces with everything a business needs: from interiors and technology to facility management and value-added services. The company also runs several other verticals to cater to different business needs:
This wide range of offerings shows IndiQube’s flexibility in meeting the needs of various types of clients, whether large corporations or budding startups.
While IndiQube has seen significant growth in recent years, it is still facing financial challenges. Here’s a look at the company’s financial performance:
Despite posting impressive revenue growth, the company has yet to turn a profit, with losses increasing in FY24. However, the EBITDA figures suggest that IndiQube is improving its core operations, and investors will be looking to see how effectively the company manages its costs as it scales.
IndiQube has recently bolstered its leadership team by appointing four independent directors to its board. This includes Naveen Tewari, CEO and founder of InMobi, as well as Rahul Matthan, a partner at the law firm Trilegal, among others. The move is aimed at bringing in experienced professionals to help steer the company toward profitability and long-term success.
The demand for flexible workspaces in India is on the rise, thanks in large part to the shift towards hybrid work models and the growing need for scalable, cost-efficient office solutions. According to a CBRE report, flexible workspace stock in India has surpassed 79 million square feet, with Tier 1 cities accounting for around 72 million square feet. By 2027, this figure is expected to grow to 124 million square feet.
Bengaluru leads the pack, accounting for more than 30% of the flexible workspace stock in Tier 1 cities. IndiQube is at the forefront in Bengaluru, managing 60 centers covering 5.04 million square feet. As demand for flexible workspaces grows, IndiQube stands to benefit from being one of the top operators in the city.
For investors, IndiQube’s IPO presents an intriguing opportunity to get involved in the booming flexible workspace sector in India. While the company has faced losses, its strong revenue growth, large market presence, and diverse service offerings make it a promising contender in this fast-evolving industry.
If you’re looking to invest in a company with significant growth potential in one of the most exciting markets in India, IndiQube’s IPO is certainly worth keeping an eye on.
Final Thoughts
IndiQube’s upcoming IPO is a key step in its expansion plans, aiming to capture a larger share of India’s fast-growing flexible workspace market. With a fresh issue of Rs 750 crore and a strong commitment from its co-founders, the company has the potential to revolutionize how businesses across India use office spaces. Whether you’re an investor or simply interested in the future of workspaces, this IPO could be a great opportunity.
