Indiqube Spaces IPO to open on Wednesday: Here are 10 key things to know from the RHP

Indiqube Spaces IPO: The initial public offering (IPO) of Indiqube Spaces is set to open for subscription later this week. The company is already enjoying a strong grey market premium (GMP), signaling a strong buzz around the issue.

Indiqube Spaces IPO is scheduled to run from July 23 to July 25, with the tentative listing date fixed as Wednesday, July 30. The issue is priced in the range of ₹225 to ₹237 per share, with investors allowed to bid in lots of 63 shares.

Indiqube Spaces IPO: Key things to know from RHP

Ahead of the issue opening, here are ten key things that investors should know from the company's red herring prospectus.

1. Issue size

Indiqube Spaces IPO is a mix of fresh issue of ₹650 crore and an offer for sale of ₹50 crore. Therefore, the total issue size is ₹700 crore.

2. Sellers in Indiqube Spaces OFS

Rishi Das and Meghna Agarwal are the promoter selling shareholders in Indiqube Spaces IPO. Each promoter is looking to offload stake worth ₹25 crore.

3. Objective of the Indiqube Spaces IPO

The company plans to use the funds raised from the IPO to fund capex towards establishment of new centres, repayment of certain borrowings availed by the company and for general corporate purposes.

4. Company's financial snapshot

While the company's revenue has seen a steady growth to ₹1059 crore in FY25 from ₹831 crore in FY24 and ₹580 crore in FY23, it remains a loss-making entity. In FY25, the company posted a loss of ₹140 crore while the figure stood at ₹341.5 crore in FY24. In the preceding fiscal, the loss was at ₹198 crore.

5. Peer of the company

Awfis Space Solutions is the only listed peer of Indiqube Spaces, according to the company's RHP. Unlike Indiqube, Awfis swung to profit in the recently concluded fiscal 2024-25 (FY25).

6. About the business

Indiqube Spaces offers workplace solutions, dedicated to transforming the traditional office experience. Its diverse solutions range from providing large corporate offices (hubs) to small branch offices (spokes) for enterprises and transforming the workplace experience of their employees by combining interiors, amenities and a host of value-added services.

7. Industry overview

India is one of the largest flexible workspaces markets in APAC with a total stock of over 72 Mn sq. ft. in Tier 1 cities as of H1 CY2024. Favorable demographics, availability of quality talent pool and relative competitive cost for talent may position India as a preferred destination for setting up bases for MNCs, and corporates for their Global Capability Centres (GCCs). These companies may also consider evaluating flexible workspaces to expand their operations in India which may also help in enabling them to outsource some elements of their value chain including but not limited to office experience and running cost-efficient operations. This may also support the existing demand for flexible workspace solutions.

8. Risks of investing in Indiqube Spaces IPO

Several risks of picking Indiqube Spaces IPO are:

• The business is sensitive to real estate market fluctuations and we have witnessed a decline in our occupancy rate from 83.68% as of March 31, 2023 to 80.21% as of March 31, 2024.
• The company does not own the properties where its centers are located. Any defect in the title and ownership of such properties may result in centers being shut down, result in relocation costs and termination of client agreements, which may adversely impact business.

9. IPO allocation

In the Indiqube Spaces IPO, 75% of the offer is reserved for QIBs, 15% is allocated for NIIs and the remaining 10% for retail investors.

10. BRLMs

ICICI Securities and JM Financial are the book running lead managers while MUFG G Intime India Private Limited is the registrar to the issue.

Indiqube Spaces IPO GMP

Indiqube Spaces IPO GMP today is ₹40. This means, in the grey market, the IPO shares are available at a ₹40 premium. At this GMP and the current issue price, Indiqube Spaces shares could list at ₹277, a premium of 17% over the upper end of the IPO price of ₹237.