Managed workplace major IndiQube to hit the market with ₹700 crore IPO

The initial public offering (IPO) of IndiQube Spaces Ltd, a managed workplace solutions company, will open on July 23, Wednesday and close on July 25, Friday. The float comprises a fresh issue of ₹650 crore and an offer for sale (OFS) of ₹50 crore by the Promoters, Rishi Das and Meghna Agarwal.

WestBridge Capital, a key investor in the firm since 2018 is not doing any OFS. Of the total proceeds, ₹462.6 crore will be used for setting up new centres; and repayment of debt with ₹93 crore and the rest for general corporate purposes. During 2018 and 2022, the company had raised ₹324 crore led by WestBridge Capital with ₹190 crore, followed by promoter investment of ₹131 crore and the remaining from angel investor Ashish Gupta.

With a portfolio of 8.40 million sq ft across 115 properties, IndiQube has a presence in 15 cities with a total seating capacity of 186,719. Its AUM has grown at a CAGR of 30% over the past two years. According to CBRE, Bengaluru is the largest flex market in India. IndiQube, with a portfolio of 65 centres spanning 5.43 million sq ft, is among the leading operators in Bengaluru.

According to a CBRE report, the total flexible workspace stock ranging between 82 million and 86 million sq. ft. in CY24 is forecasted to grow to 140-144 million sq ft across Tier 1 cities by the end of CY27. IndiQube serves 769 clients, of which 44% clients are Global Capability Centers. The company follows an enterprise-first strategy owing to which 63% of its occupied area comes from clients who have leased 300+ seats. Further, 44% of its revenue is generated from multi-centre clients. Its diverse client mix comprises Enphase, Myntra, Zerodha, NoBroker, upGrad, Siemens, Juspay, Perfios, Moglix, Ninjacart, Narayana Health and Allegis to name a few.

The company clocked a total income of ₹1,103 crore in FY25, a CAGR of 35% over FY23. The company’s FY25 EBITDA stood at ₹660 crore with an RoCE of 34.21%, cash EBIT margins of 10.81% with an occupancy rate of 86.50% in steady state centres. Revenue from value added services has increased from ₹68 crore in FY23 to ₹135 crore in FY25, at a CAGR of 40.69%, making up for 13% of its FY25 revenue. As per IGAAP accounting standards, the company is PAT Positive.

Its workplace technology stack MiQube that provides one-touch access to a variety of services, including booking meeting rooms, ordering meals among others has surpassed 1 million in transaction volume in FY25.

The company also specialises in transforming old, standalone Grade B buildings into green buildings by renovating, upgrading, and employing sustainable practises. Around 30% of its portfolio comes from these renovated centres and over 36% of its portfolio has received green certifications. The company also has a solar farm with a capacity of 20 MW, whose first phase has recently got operational.

Flexible workspaces are becoming an integral part of the commercial office market. The rise of hybrid work models, prudence in the use of capital, the need for flexibility, workspace planning, and a shift in work culture are among the factors fuelling the demand for flexible workspaces.