Highlights
IndiQube Files for Initial Public Offering
IndiQube, a leading provider of workplace solutions, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise capital via an initial public offering (IPO). This proposed IPO includes a new equity share issuance of up to Rs 750 crore and a sale offer of equity shares worth Rs 100 crore from promoters Rishi Das and Meghna Agarwal.
Established in 2015, IndiQube operates approximately 103 centres across 13 cities in India. Its diverse clientele features prominent Indian firms and startups, including NoBroker, Redbus, and upGrad. The company reported a total income of Rs 867.6 crore in FY24, marking a substantial rise from Rs 601.2 crore in FY23.
IPO Details
The proposed IPO features:
- A fresh issue of equity shares valued at Rs 750 crore (approximately $89 million).
- An offer for sale (OFS) of equity shares amounting to Rs 100 crore.
Co-founders Rishi Das and Meghna Agarwal will each sell shares worth Rs 50 crore through the OFS. Notably, there are no external shareholders involved in the OFS, underscoring the founders’ pivotal role in this offering.
As per the DRHP, the key shareholding details are as follows:
- Anshuman Das is the largest shareholder, with a stake of 25.32%.
- Aravali Investment Holding follows with 22.07%.
- Other significant shareholders include:
- WestBridge Capital – 5.79%
- Carenet Technologies – 5.15%
- Hirepro Consulting – 2.15%
Co-founders Rishi Das and Meghna Agarwal collectively hold 37.92% of the company’s shares.
Listing Plans
IndiQube intends to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). ICICI Securities Limited and JM Financial are managing the IPO as the book-running lead managers.
Use of Proceeds
According to the company’s statement, the net proceeds from the fresh issue will be allocated towards:
- Establishing new centres.
- Repaying borrowings.
- Other general corporate purposes.
Financial Performance
For the first quarter of the current fiscal year, IndiQube reported a revenue of Rs 242 crore, with losses amounting to Rs 42 crore.
The WestBridge Capital-backed firm experienced a robust 43% year-on-year growth in revenue, achieving Rs 830 crore in FY24, compared to Rs 580 crore in FY23. However, this growth led to a significant increase in losses, which escalated 72.2% to Rs 341 crore in FY24, up from Rs 198 crore in FY23.
Industry Context
Awfis has made history as the first Indian co-working startup to be listed on the stock exchange, while Smartworks has recently received SEBI approval for its own IPO. Reports suggest that numerous other co-working companies, including WeWork India, Simpliwork, Table Space, DevX, and IndiQube, are gearing up for their IPOs.
IndiQube is the latest enterprise to pursue an IPO, following the public offerings of numerous startups, such as EV manufacturer Ola Electric and food delivery platform Swiggy in 2024. Additionally, other companies, including Ather Energy and the omnichannel jewellery brand BlueStone, have also submitted draft papers for their public listings.
The submission of IndiQube’s DRHP coincides with the rising demand for flexible workspaces in the commercial office market, reflecting the growing trend towards hybrid working models. ICICI Securities Limited and JM Financial Limited are serving as the Book Running Lead Managers for this offering, with intentions for the equity shares to be listed on the BSE and NSE.