Workplace solutions firm IndiQube to file draft papers for ₹800 cr IPO next week
- Bengaluru-based IndiQube's IPO will comprise a fresh issue as well as an offer for sale by the promoters.
Workplace solutions company, IndiQube, is expected to file its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (Sebi), next week, for an initial public offering (IPO) to raise ₹800 crore, said two people familiar with the development.
Bengaluru-based IndiQube's IPO will comprise a fresh issue as well as an offer for sale by the promoters.
“The fresh issue component is expected to be around ₹700 crore, while the promoters are expected to have a small offer for sale (OFS) component of around ₹100 crore,” said one of the persons mentioned above, asking not to be named.
“Existing investors including WestBridge Capital are not looking at any OFS or dilution,” the person added.
A majority of the proceeds will be used for capital expenditure towards new centres, while a portion of would be for repayment of debt.
ICICI Securities and JM Financial are the bankers to the issue.
Growth and footprint
IndiQube was co-founded by husband-wife duo Rishi Das and Meghna Agarwal in 2015. It has a portfolio of 7.7 million sq ft across 14 cities. The company, which has been funded by WestBridge Capital and angel investor Ashish Gupta, in November said it has crossed the milestone of 100 properties in its portfolio. Of this, it has nearly 60 properties across 5 million sq ft in Bengaluru.
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The firm counts a mix of Indian conglomerates, startups and Fortune 500 companies as its clients, which include Philips, Samsung, Siemens, Tata Digital, upGrad, Zerodha, NoBroker, Myntra, Air India, Ultratech Cement, among others.
An IndiQube spokesperson did not respond to queries.
As it gears up to file the DRHP, the board of IndiQube recently approved the resolution to change the company’s status from private to public. Its name has been changed from Indiqube Space Pvt. Ltd to Indiqube Spaces Ltd.
In September, Crisil Ratings upgraded its rating for IndiQube to A+ due to sustained improvement in business performance, as evidenced by a healthy CAGR of 33.8% over the last 3 years.
In the flexible workspace category, IndiQube competes with WeWork India, Smartworks, Awfis Space Solutions, Table Space and others. Awfis had launched its IPO in May, and listed at a premium of 13.5% over the issue price. Smartworks, which is backed by Singapore's Keppel Ltd, recently received approval from Sebi for a public listing.
The flexible workspace sector, within the larger commercial office sector in India, has performed well in recent years. Despite the setback caused by the pandemic, operators have witnessed increased occupancy levels and a rise in leasing.
The flexible workspace stock in India stands at over 74 million sq ft, as per a recent CBRE India report. While over 85-90% of this stock is spread across the key top tier property markets, the demand for flexible workspaces beyond the metros is also rising. The total addressable market for the flexible workspace segment is expected to be around 320-325 million sq ft by 2027.
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Business NewsCompaniesWorkplace solutions firm IndiQube to file draft papers for ₹800 cr IPO next week
First Published:13 Dec 2024, 07:42 PM IST
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