Workplace solutions company IndiQube to file draft documents for Rs 800 cr IPO next week

Workplace solutions company IndiQube is expected to submit its draft red herring prospectus (DRHP) to market regulator Securities and Exchange Board of India (Sebi) next week for its initial public offering (IPO) to raise funds $8 billion, two people familiar with the development said.

Bengaluru-based IndiQube’s IPO will include fresh issue as well as offer for sale from promoters.

“Part of the new release is expected to be in $700 crore, while the promoters expect a small offer for sale (OFS) tranche of around Rs 700 crore $100 crore,” one of the people cited above said on condition of anonymity.

“Existing investors, including WestBridge Capital, will not consider any OFS or dilution,” the person added.

Most of the proceeds will go toward capital expenditures for the new center, while a portion will be used to pay down debt.

ICICI Securities and JM Financial were the bankers for the issue.

Growth and footprint

IndiQube was co-founded in 2015 by Rishi Das and Meghna Agarwal. The company has a portfolio of 7.7 million square feet in 14 cities. The company, which is backed by WestBridge Capital and angel investor Ashish Gupta, said in November that it had passed the 100-property milestone in its portfolio. Of these, the company owns nearly 60 properties with an area of ​​5 million square feet in Bengaluru.

The company’s clients include Indian conglomerates, startups and Fortune 500 companies including Philips, Samsung, Siemens, Tata Digital, upGrad, Zerodha, NoBroker, Myntra, Air India, Ultratech Cement and others.

An IndiQube spokesperson did not respond to inquiries.

In preparation for filing the DRHP, IndiQube’s board of directors recently approved a resolution to change the company’s status from private to public. Its name has been changed from Indiqube Space Pvt. to “Indiqube Space Pvt.” Ltd. changed its name to Indiqube Spaces Ltd.

In September, Crisil Ratings upgraded IndiQube’s rating to A+ as its business performance continued to improve, with a compound annual growth rate of 33.8% over the past three years.

In the flexible workspace category, IndiQube competes with WeWork India, Smartworks, Awfis Space Solutions, Table Space, and others. Awfis launched its IPO in May, with a listing price that was 13.5% higher than the issue price. Smartworks is backed by Singapore’s Keppel Ltd and recently received public listing approval from Sebi.

The flexible office space segment within the larger commercial office segment in India has performed well in recent years. Despite setbacks caused by the pandemic, operators have seen increases in occupancy and leasing volumes.

According to a recent report by CBRE India, India’s flexible office space stock exceeds 74 million square feet. While more than 85-90% of inventory is spread across major top real estate markets, demand for flexible workspaces outside metropolitan areas is also rising. The total addressable market in the flexible workspace sector is expected to reach approximately 320-325 million square feet by 2027.