IndiQube Spaces, a Bengaluru-based managed workspace provider, has filed its draft red herring prospectus (DRHP) with SEBI for a INR 850 crore IPO. The offering includes a fresh issue of INR 750 crore and an offer for sale (OFS) of INR 100 crore by promoters Rishi Des and Meghna Agarwel. The funds will support expansion plans, with INR 462.6 crore allocated for new centers, INR 100 crore for debt repayment, and the remainder for corporate purposes. Operating 103 centers across 13 cities, IndiQube manages 7.76 million sq ft, catering to hybrid work demands. With FY24 income at INR 867.6 crore, the IPO reflects the rising demand for flexible workspaces. ICICI Securities and JM Financial are the lead managers.
IndiQube Spaces, a company specializing in managed workplace solutions, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) with plans to raise INR 850 crore through an initial public offering (IPO). This move marks a significant step for the Bengaluru-based firm as it aims to broaden its reach in the growing flexible workspace market.
The proposed IPO consists of a fresh issue of equity shares worth up to INR 750 crore, along with an offer for sale (OFS) of equity shares totaling INR 100 crore from its promoters, Rishi Des and Meghna Agarwel. The funds raised will primarily be used for expanding operations, with INR 462.6 crore allocated for establishing new centers. Additionally, INR 100 crore will go toward repaying existing borrowings, and the remainder will be used for general corporate purposes.
IndiQube, founded in 2015, has quickly established itself in the managed workspace sector. As of June 30, 2024, the company operates 103 centers across 13 cities, managing a total area of approximately 7.76 million square feet. This extensive network supports a seating capacity of 172,451, catering to the rising demand for flexible work environments. The company has received backing from WestBridge Capital and investor Ashish Gupta, which underscores its potential in a competitive market.
The financial performance of IndiQube has shown promising growth. For the fiscal year 2024, the company reported total income of INR 867.6 crore, a significant increase from INR 601.2 crore in the previous year. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) for FY24 reached INR 263.4 crore, with an impressive INR 153 crore reported for the first quarter of FY25 alone. This growth reflects the increasing trend of businesses seeking flexible office solutions, particularly in the wake of the COVID-19 pandemic.
The managed workspace sector has gained traction as companies adapt to hybrid work models. As businesses look for cost-effective and flexible solutions, IndiQube's strategy to expand its footprint comes at a crucial time. The company plans to differentiate itself by providing tailored workspace solutions that meet the diverse needs of its clients, from startups to large enterprises.
ICICI Securities and JM Financial are the book-running lead managers for this IPO. The success of IndiQube's offering could pave the way for other companies in the managed workspace sector to consider public listings, as the demand for flexible office spaces continues to rise.
In conclusion, IndiQube's IPO represents not only a significant milestone for the company but also reflects the changing landscape of work environments in India. As more businesses embrace flexible work arrangements, companies like IndiQube are well-positioned to thrive in this evolving market. The upcoming IPO will allow IndiQube to enhance its services and expand its operations, meeting the growing demands of modern businesses.
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