IndiQube, a Bengaluru-based workspace provider, files DRHP for Rs 850 crore IPO

Bengaluru-based managed workspace provider IndiQube has filed its draft red herring prospectus (DRHP) with SEBI for a Rs 850 crore initial public offering (IPO). 

The offering includes a Rs 750 crore fresh issue and a Rs 100 crore offer for sale (OFS) by co-founders Rishi Das and Meghna Agarwal, with each selling shares worth Rs 50 crore.  

IPO Details

- Fresh Issue: Rs 750 crore  
- Offer for Sale (OFS): Rs 100 crore  
   - Rishi Das: Rs 50 crore  
   - Meghna Agarwal: Rs 50 crore  

No external shareholders are participating in the OFS emphasizing the founders integral role. The shares are expected to list on NSE and BSE.  

Shareholding Structure

1. Anshuman Das: 25.32%  
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 & Meghna Agarwal): 37.92%  

WestBridge Capital and Ashish Gupta are among IndiQube’s key backers.  

Read more- India Cements CEO N Srinivasan Resigns After Rs 7000 Cr UltraTech Deal

Use of IPO Proceeds

The net proceeds will fund: 

1. Establishment of New Centers: Rs 462.6 crore  
2. Debt Repayment: Rs 100 crore  
3. General Corporate Purposes  

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ICICI Securities and JM Financial are the lead managers for the IPO.  

Business Overview  

IndiQube operates 103 centers across 13 cities, managing 7.76 million sq. ft. with a total seating capacity of 172,451. It caters to a diverse client base, including GCCs, Indian corporates, unicorns and startups.  

Key Offerings:  

1. IndiQube Grow: Plug-and-play workspaces with integrated services.  
2. IndiQube Bespoke  
3. IndiQube One  
4. MiQube  
5. IndiQube Cornerstone  

Financial Highlights

- Q1 FY25 Revenue: Rs 242 crore; Loss: Rs 42 crore  
- FY24 Revenue: Rs 830 crore (vs. Rs 580 crore in FY23)  
- FY24 Losses: Rs 341 crore (up from Rs 198 crore in FY23)  
- FY24 EBITDA: Rs 263.4 crore; Q1 FY25 EBITDA: Rs 153 crore  

Board Strengthening

IndiQube has added four independent directors to its board:  

1. Naveen Tewari: Ceo, inmobi Group  
2. A.G. Muralikrishnan: Veteran finance professional  
3. Rahul Matthan: Legal expert and partner at Trilegal  
4. Sachi Krishana: HR industry leader  

Flexible Workspace Market

India’s flexible workspace market, driven by hybrid work models and cost efficiency is on a growth trajectory. With over 79 million sq. ft. in stock, the sector is expected to expand to 124 million sq. ft. by 2027, according to CBRE.  

IndiQube leads in Bengaluru, managing 60 centers spanning 5.04 million sq. ft.  

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This IPO positions IndiQube to capitalize on the rising demand for flexible and scalable workspaces in India.  

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