IPO closes on 25 Jul'25
Indiqube Spaces Ltd
Minimum Investment
₹ 14,931 / 63 shares
Grey market premium
₹ 14 (6% premium)
Our Verdict:
Neutral
- Indiqube Spaces Ltd (Indiqube) has established a strong leadership position in India’s flexible workspace sector, particularly in Bengaluru, which accounts for 30% of the flexible workspace inventory in Tier I cities.
- The company has outlined substantial capital expenditure (capex) plans, aiming to expand by an additional 3 million square feet over the next three years. A significant portion of the IPO proceeds (Rs 462 crore) will be directed towards outfitting new centres, thereby supporting pipeline growth during this period.
- However, despite its scalability potential, the company has not yet achieved profitability, and there is limited visibility on near-term profits. This makes the IPO less appealing for investors at this stage.
- While the long-term outlook appears promising, the short-term upside seems limited. Investors may consider adopting a wait-and-watch approach, keeping the stock on their radar until earnings catch up with growth.
About the company
Founded in
14 Jan'15
Managing director
Rishi Das
- Indiqube is a managed workplace solutions provider offering sustainable, technology-driven services that enhance the workplace experience. It offers a range of solutions, including office spaces, green initiatives, designed interiors and value-added services like facility management, catering, transportation and tech applications, catering to both B2B and B2C clients.
- As of March 31, 2025, Indiqube operates a portfolio of 115 centres across 15 cities, including 105 operational centres and 10 centres under letter of intent. It covers 8.4 million square feet of area under management (AUM) in super built-up area (SBA), with a total seating capacity of 1,86,719.
STRENGTHS
- Market Leadership: Indiqube is a prominent player in India’s rapidly expanding flexible workspace market. It is one of the top operators in Bengaluru, which represents 30% of the flexible workspace inventory across Tier I cities.
- Revenue Growth: From FY23 to FY25, Indiqube achieved a robust compound annual growth rate (CAGR) of 35% in operating revenue and 60% in EBITDA.
- Operational Efficiency: Indiqube showcases strong operational efficiency, with a Return on Capital Employed (RoCE) of 34.2% in FY25. The company also posted an impressive EBITDA margin of 58.2% for FY25.
- Diversified Client Base: Indiqube’s client base of 769 corporate houses spans various industries and regions, reducing client concentration risk. In FY25, its top client and top five clients accounted for just 3.47% and 11.8% of total revenue, respectively.
- Expansion of VAS: Indiqube is actively expanding its value-added services (VAS), including facility management, F&B, IT support and interior design offerings. VAS contributed 12.74% of revenue in FY25 and has grown at 41% annually from FY23 to FY25, outpacing the 34.1% annual growth in workspace leasing.
RISK FACTORS
- Weak Track Record: Indiqube has reported consistent losses over the past three years. The company's future hinges on its ability to increase revenue and manage expenses effectively to reach profitability. Failing to meet these objectives could negatively impact business operations, cash flows and financial stability.
- Geographic Concentration: As of FY25, nearly 89% of Indiqube's revenue was derived from centres in Bengaluru, Pune and Chennai collectively. Any adverse developments in these locations could significantly impact the company’s operations and financial results.
- Unregistered Lease Agreements: As of March 31, 2025, approximately 22.4% of the company’s active stock was linked to lease agreements that have not been registered under the Registration Act, 1908, nor stamped according to the relevant state stamp duty laws.
- Commercial Property Price Fluctuations: Changes in commercial property prices could impact Indiqube’s leasing costs, potentially reducing profitability.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 700 crore
Fresh Issue
₹ 650 crore
OFS
₹ 50 crore
Price range
₹ 225 - 237
Lot size
63 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Funding capital expenditure for the establishment of new centres;
- Pre-payment or re-payment of certain outstanding borrowings availed by the company; and
- General corporate purposes.
Dates
Bidding open
23 Jul'25
Bidding close
25 Jul'25
Allotment date
28 Jul'25
Refund date
29 Jul'25
Listing
30 Jul'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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