Indiqube Spaces Ltd. (ISL), a prominent player in India’s managed workplace solutions sector, is set to launch its Initial Public Offering. Company has focus on transforming traditional office experiences through comprehensive, sustainable, and technology-driven solutions.
IPO Details
- IPO Dates: The bidding opened for subscription on July 23, 2025, and will close on July 25, 2025
- Issue Size: The total IPO is a bookbuilding issue of ₹700.00 crores . This includes a fresh issue of 2.74 crore shares aggregating to ₹650.00 crores and an offer for sale (OFS) of 0.21 crore shares aggregating to ₹50.00 crores.
- IPO Price Band: The price band is set at ₹225 to ₹237 per share
- Lot Size: The lot size for an application is 63 shares
- Investor Allocation: 74.82% (2,21,04,430 shares) for Qualified Institutional Buyers (QIB), 14.96% (44,20,886 shares) for Non-Institutional Investors (NII), 9.98% (29,47,257 shares) for Retail Individual Investors (RII), The company reported losses, so 75% is reserved for QIBs and only 10% for retail.
- Lead Managers: ICICI Securities Limited and JM Financial Limited
- Registrar: MUFG Intime India Private Limited (Link Intime)
About the Company
- History: Founded in 2015, Indiqube Spaces Ltd. (ISL) is an 11-year-old company. It inaugurated its first property in Bengaluru in 2015 and launched its “MiQube App” in 2017.
- Main Products/Services: ISL offers managed and tech-enabled workspace solutions. Its diverse offerings include:
- IndiQube Grow: Customized enterprise workspaces and co-working solutions with shared amenities like meeting rooms, day passes, and virtual office services, offering flexible and tailored options.
- IndiQube Bespoke: Fully customizable office designs with standard, premium, and luxury options, focusing on sustainable, eco-friendly solutions. It provides an in-house team for design, project management, and maintenance with flexible financial arrangements.
- IndiQube One: Technology-enabled property and facility management services, including maintenance, asset management, employee services, IT solutions, and green initiatives, all ISO certified.
- MiQube™ Workplace Technology Stack: A proprietary technology stack with a community app for employees to access services like booking meeting rooms, transportation, meals, desk reservations, helpdesk requests, and community events.
- Network/Branches: As of March 31, 2025, the company operates in 15 Indian cities, including seven Tier I cities (Bengaluru, Pune, Chennai, Mumbai, Noida, Gurugram, Hyderabad) and 11 non-Tier I cities (Coimbatore, Kochi, Madurai, Jaipur, Calicut, Vijayawada). They have a portfolio of 105 centers and agreements for 10 more. The managed portfolio covers 8.4 million sq ft, with 6.9 million sq ft operational. In Bengaluru, they have 65 centers spanning 5.43 million sq ft.
- Promoters: Rishi Das, Meghna Agarwal, and Anshuman Das are the promoters of the company.
- Employees: The issue includes a reservation of up to 69,767 shares for employees, offered at a discount of ₹22.00 to the issue price.
Financials
Indiqube Spaces Ltd.’s financial information (Restated) for the financial years ended March 31, 2023, 2024, and 2025 (in ₹ Crores):
| Particulars | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
| Revenue from operations (Rs. Cr) | 1,059.29 | 830.57 | 579.74 |
| EBITDA (Rs. Cr) | 660.19 | 263.42 | 258.23 |
| EBITDA Margin (%) | 58.20% | 27.25% | 40.83% |
| Loss After Tax (Rs. Cr) | -139.62 | -341.51 | -198.11 |
| Loss After Tax Margin (%) | -12.66% | -39.36% | -32.95% |
Post IPO Market Capitalization is ₹4977.12 Crores. The issue is priced negatively, and the P/E based on FY24 and FY25 earnings stands at NA due to the company’s loss-making status.
Observation on Results: The company has shown steady top-line growth, with revenue increasing by 27.54% from FY24 to FY25. However, it has posted losses for the reported years, which the management attributes to Ind AS accounting standards. The EBITDA margin has seen significant fluctuations, with recovery in FY25 compared to FY24.
Salient Points
- Use of Funds: The net proceeds from the fresh issue, amounting to ₹650.00 crores, will be used to fund capital expenditure for establishing new centers (₹462.65 crores), repay/pre-pay certain company borrowings (₹93.04 crores), and for general corporate purposes.
- Business Scenario: India’s flexible workspace stock is expected to boom approximately 3x in the next three years, growing from over 96 million sq ft to 280-300 million sq ft by CY27 ( presenting a significant growth opportunity for ISL ). The company primarily generates revenue from high-demand cities like Bengaluru, Pune, and Chennai ( accounting for nearly 89% of its FY25 revenue ).
- Business Operations: Indiqube focuses on leasing large to mid-sized full buildings rather than fractional spaces, with most centers in hub and spoke clusters for efficient resource allocation. Their strategy involves acquiring full buildings in high-demand micro-markets with strong infrastructure and talent. They also transform non-institutional and aging Grade B properties into high-quality, green, and modern workspaces ( renovated properties comprised 29.57% of their portfolio as of March 31, 2025 ).
- Revenue Model: Their ‘enterprise first’ demand strategy focuses on large clients seeking scalable, customizable, and on-demand workspaces for long tenures. As of March 31, 2025, clients with over 300 seats accounted for 63.06% of their portfolio, with an average lock-in of 36 months. Global Capability Centers (GCCs) comprise 43.56% of their clientele.
- Business Strategy: The company aims to leverage its experience to expand operations by opening new centers, intending to cover 3.07 million square feet through new centers in Fiscal 2026, 2027, and 2028 across Bangalore, Chennai, Pune, and non-tier-I cities.
- Risks:
- Geographic Concentration: A significant portion of revenue (88.84% in FY25) is derived from Bengaluru, Pune, and Chennai, posing a risk if revenue from these cities decreases due to competition, increased supply, or reduced demand.
- Lease Renewal: Failure to renew lease contracts from landlords may adversely impact the company.
- Losses: The company has incurred losses for the last three fiscals due to Ind AS accounting standards and there is no assurance that it will not incur losses in the future.
- Aggressive Pricing: IPO pricing is aggressive, with an enterprise value (EV) higher than peers despite lower size and declining margins.
- Litigations: As of the RHP date, there are 4 criminal proceedings and 6 tax proceedings involving the company, directors, or promoters, with an aggregate amount involved of ₹54.74 million (for company) and ₹0.41 million (against company). Complaints were also received after filing the DRHP.
- Revenue Split by Region (FY25 Revenue from Operations, in ₹ Million): Bengaluru, Karnataka (6,671.02); Pune, Maharashtra (1,344.10); Chennai, Tamil Nadu (1,395.60) ( these three cities dominate revenue generation ).
- Revenue Split by Product/Service (FY25, in ₹ Million): Grow (5,775.85 in Bangalore; total across cities 9,923.63), Bespoke (35.30 in Bangalore; total across cities 92.42), MiQube One (851.89 in Bangalore; total across cities 1,185.06) ( IndiQube Grow is the primary revenue driver ).
- Capacity Utilization: Operational seat capacity stood at 1,53,830 seats as of March 2025. Actual occupancy rate was 85.12% in FY25, declining from 86.50% in FY25 (for centers over 12 months old) compared to 93.5% in FY23.
- Expansion & Strategies: The company prioritizes full building acquisitions in high-demand markets. They also upgrade properties with interiors, amenities, and sustainability initiatives.
- Clients: The company serves over 769 clients as of March 2025, including Myntra, Zerodha, Siemens, MG Motors, and RedBus. 59.56% of clients were acquired directly by the company.
- Receivables Trend: Trade receivables increased from ₹33 Cr in FY23 to ₹79 Cr in FY25.
- CAGR (FY23-FY25): Revenue, EBITDA, and Adjusted EBITDA have grown at a CAGR of 35.2%, 61.4%, and 54.9% respectively. The company posted an average negative EPS for the last three fiscals.
Peers
Comparison of Indiqube Spaces Limited with listed industry peers (as of March 31, 2025):
| Particulars | Indiqube Spaces Ltd. | Smartworks Coworking Spaces Ltd. | Awfis Space Solutions Ltd. | EFC (I) Ltd. |
|---|---|---|---|---|
| CMP (Rs) | 237.0 | 456.5 | 646.9 | 343.8 |
| Sales (Rs Cr) | 1,059.3 | 1,374.1 | 1,207.5 | 656.7 |
| EBITDA (Rs Cr) | 616.5 | 857.3 | 402.4 | 327.7 |
| Adj. EBITDA (Rs Cr) | 114.5 | 172.2 | 162.0 | – |
| Adj. Net Profit (Rs Cr) | (139.6) | (63.2) | 42.8 | 140.8 |
| Mkt Cap. (Rs Cr) | 4,977.1 | 5,210.1 | 4,612.0 | 3,422.2 |
| Enterprise Value (Rs Cr) | 4,665.0 | 5,040.1 | 4,553.7 | 3,511.8 |
| EBITDA Margin (%) | 58.2 | 62.4 | 33.3 | 49.9 |
| Adj. EBITDA Margin (%) | 10.8 | 12.5 | 13.4 | – |
| Net Profit Margin (%) | – | – | 3.5 | 21.4 |
| EV/EBITDA (x) | 7.6 | 5.9 | 11.3 | 10.7 |
| EV/Adj. EBITDA (x) | 40.7 | 29.3 | 28.1 | – |
| RoE (%) | – | – | 9.3 | 25.9 |
| RoCE (%) | 50.8 | 17.5 | 37.2 | 31.7 |
| Number of Cities | 15 | 15 | 18 | 9 |
| Number of Centres | 115 | 50 | 230 | 79 |
| Area Under Management (mn sq ft) | 8.4 | 9.0 | 7.8 | 2.8 |
| Total Capacity Seats | 1,86,719 | 2,03,118 | 1,34,121 | 60,000+ |
| Occupancy Rate (%) | 85.1 | 83.1 | 73.0 | 90.0 |
Indiqube Spaces IPO: Anchors
IndiQube Spaces raised a total of ₹314.32 crore from 29 anchor investors by allotting 1.36 crore shares at ₹237 per share. The top 10 anchor investors with approximate percentage allocations (rounded from available data) are: Aditya Birla Sun Life Mutual Fund (approx. 10%), Ashoka WhiteOak ICAV & WhiteOak Capital (8%), Invesco India ELSS Tax Saver Fund (7%), Bandhan Large & Mid Cap Fund (6%), Motilal Oswal Large Cap Fund (6%), Malabar India Fund (5%), Malabar Midcap Fund (5%), Max New York Life Insurance (5%), Edelweiss Mutual Fund (5%), and Baroda BNP Paribas Mutual Fund (3.5%).
The remaining anchor investors include: TOCU Europe III S.A R.L., Groww Mutual Fund, BNP Paribas Financial Markets, Citigroup Global Markets Mauritius, Societe Generale, and several other institutional and domestic mutual funds.
Total allocation to mutual funds is approximately 67.35% of the anchor book, distributed across 21 schemes from eight domestic mutual funds.
Management Commentary
According to Indiqube Spaces’ management, the company’s net losses are due to accounting adjustments under Ind AS standards. They believe that their niche play with well-furnished and excellent ambiance, combined with rising demand for modern office space solutions at affordable costs, positions them to perform better and potentially turn profitable in the near term.
Opinion
I have a neutral view on the IPO. May consider it on Day 3.
Post IPO equity capital: Rs. 21.00 crore, P/E for FY24: NA, P/E FY25: NA (annualized).
Investment Thesis: Company is engaged in managed and tech-savvy workplace solutions with good demand in the southern region and enjoys a good market share and preference among IT giants. Indiqube’s is positioned as a leading provider of tech-enabled, fully managed office spaces with a scalable and asset-light model. They emphasize the company’s strong growth in managed area and tenant base, driven by increasing demand for flexible workspaces in high-growth cities.
Despite the positive aspects, the company has posted losses for the reported years due to Ind AS accounting standards, leading to a negative pricing of the issue.At the upper price band, ISL is valued at an FY25 EV/Adj. EBITDA of 40.7x, which is at a premium to listed peers. They suggest that Indiqube’s pricing seems aggressive given its lower size and declining steady-state occupancy compared to peers.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.