IndiQube Spaces Ltd Files DRHP for Rs. 850 Crore IPO

IndiQube Spaces Limited, a managed workplace solutions company dedicated to transforming the traditional office experience through comprehensive, sustainable, and technology-driven solutions has filed the draft red herring prospectus (DRHP) with capital markets regulator, SEBI to raise funds through an initial public offering (IPO).

IndiQube is backed by prominent venture capital firm, WestBridge Capital and renowned individual investor, Ashish Gupta with Rishi Das, Chairman, Executive Director and CEO and Meghna Agarwal, COO and Executive Director at the helm.

The IPO of the Bengaluru based company comprises of a Fresh Issue of equity shares aggregating up to Rs. 750 crores and an Offer for Sale (OFS) of equity shares aggregating up to Rs. 100 crores by the Promoter Selling Shareholders – Rishi Das and Meghna Agarwal.

IndiQube Spaces Limited proposes to utilize the Net Proceeds of the Fresh Issue towards funding capital expenditure towards establishment of new centers (Rs. 462.6 crores); repayment or prepayment, in full or in part, of certain borrowings availed by the company (Rs. 100 crores); and general corporate purposes.

The company which was incorporated in 2015, manages a portfolio of 103 centers across 13 cities, covering 7.76 million square feet of area under management (AUM) in super built-up area with a total seating capacity of 172,451 as of June 30, 2024 and has a balanced portfolio of global capability centers (GCCs) and Indian enterprises as part of its clientele.

IndiQube’s clients include GCCs, Indian corporates, unicorns as well as start-ups across sectors like Myntra, upGrad, Zerodha, No Broker, Redbus, Juspay, Perfios, Moglix, Ninjacart, Siemens, Narayana Health to name a few.

IndiQube Grow is the company’s core offering which represents a comprehensive workplace solution, for plug and play workspaces incorporating interiors, technology, facility management and value-added services. It has also developed four additional verticals, namely IndiQube Bespoke, IndiQube One, MiQube and IndiQube Cornerstone to service specialized client requirements.

It reported a Total Income of Rs. 867.6 crores in Fiscal 2024 as against Rs. 601.2 crores in Fiscal 2023. FY24 EBITDA stood at Rs. 263.4 crores, while for Q1FY25 itself the EBITDA was Rs. 153 crores.

IndiQube recently expanded its Board with addition of four Independent Directors, including one woman Independent Director. Naveen Tewari, chief executive officer and founder of the InMobi Group, Avalur Gopalaratnam Muralikrishnan, a certified chartered accountant with over 35 years of experience in the finance industry; Rahul Matthan, partner at Trilegal with 30 years of experience, and Sachi Krishana, with 20 years of experience in the field of human resources are the new members of the Board.

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 amongst the factors fuelling the demand for flexible workspaces.

According to a CBRE report, the flexible workspace stock in India currently stands over 79 million sq.ft. out of which Tier 1 cities account for over 72 million sq.ft. The Tier 1 stock is estimated to grow to approximately 124 Mn sq. ft. by end of CY2027.

Bengaluru is the largest commercial office and flexible workspace market in India currently, accounting for over 30% of the total flexible workspace stock amongst Tier I cities. IndiQube is amongst the leading operators in Bengaluru with a portfolio of 60 centers spanning 5.04 million square feet in AUM.

The Book Running Lead Managers to the offer are ICICI Securities Limited and JM Financial Limited

The equity shares are proposed to be listed on BSE and NSE.

IndiQube to Double Its Market Share In India's 4 Mn Sqft Co-Working Space By End of 2017

Leveraging the growing potential of startups and SMBs, IndiQube, India's Leading Smart Space Solutions firm has announced its plans to double the area of its co-working office space by the end of the year 2017.

''The current co-working office space segment covers an area of 4 million Sq Ft of which IndiQube accounts for 0.6 million Sq Ft of space with a PAN India market share of 15 percent. We are eyeing to double this space to 1.5 million Sq Ft by the end of this year,'' said Meghna Agarwal, Co-Founder, IndiQube.

The company also recently predicted that an unprecedented growth in the number of startups and SMBs in India will propel the growth of the co-working space segment in India by almost 40% percent in the year 2017.

Co-Working spaces in India at present have proved to be a shot in the arm for startups, as SMBs and young entrepreneurs in India who do not have the budget to shift to Business Parks in the nascent stage of their business.

The company also states that scalability will play a key role in bolstering the co-working space industry in India as a large chunk of it is still being driven by old theories of commercial real-estate.

''Co-working is still driven by frayed theories of commercial real estate; key Service aspects are still missing. A right business environment will go a long way for emerging companies to thrive by providing space to grow with key growth drivers like scalability and flexibility,'' added Meghna.

While startup nurturing policies of the central government are catalyzing the growth of the sector, the co-working space sector is also drawing attention of traditional enterprises now owing to the innovative office space and lot of events and community activities to help them nurture their growth.

Earlier this year a study by JLL, a US based investment Management Company specializing in real estate also estimated a $400 million investment in India's co-working space segment by the year 2018.