IndiQube Spaces Ltd, a Bengaluru-based workplace solutions company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise ₹850 crore. The IPO will consist of a fresh issue of shares worth ₹750 crore and an offer for sale (OFS) of ₹100 crore by its promoters, Rishi Das and Meghna Agarwal. The funds are slated for expansion, debt repayment, and general corporate purposes.
IPO Details: Allocation and Objectives
IndiQube Spaces aims to raise ₹850 crore through its IPO. According to the DRHP, the offering includes:
- Fresh Issue: Equity shares worth ₹750 crore.
- Offer for Sale: Equity shares worth ₹100 crore, offloaded by promoters Rishi Das (Chairman, Executive Director, and CEO) and Meghna Agarwal (COO and Executive Director).
The proceeds from the fresh issue will be allocated as follows:
- Establishment of New Centres: ₹462.6 crore to fund capital expenditures for opening new centers.
- Debt Repayment: ₹100 crore for repayment or prepayment of certain borrowings.
- General Corporate Purposes: Remaining funds to support operational and strategic initiatives.
The company has appointed ICICI Securities Ltd and JM Financial Ltd as the book-running lead managers for the IPO. The equity shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Company Overview: IndiQube’s Journey and Growth
IndiQube Spaces was established in 2015 and has grown into a leading workplace solutions provider. The company currently manages 103 centers across 13 cities in India, encompassing a total area of 7.76 million square feet with a seating capacity of 172,451 as of June 30, 2024.
The firm’s core offering, IndiQube Grow, provides comprehensive plug-and-play workspaces integrating interiors, technology, facility management, and value-added services. Additionally, IndiQube has introduced four specialized verticals:
- IndiQube Bespoke: Tailored workspace solutions.
- IndiQube One: End-to-end office setups.
- MiQube: Flexible and modular workspaces.
- IndiQube Cornerstone: Strategically located business hubs.
The company’s clientele features a balanced mix of global capability centers (GCCs), Indian enterprises, unicorns, and start-ups across various sectors. Notable clients include Myntra, upGrad, Zerodha, NoBroker, RedBus, Juspay, Perfios, Moglix, Ninjacart, Siemens, and Narayana Health.
Financial Performance: A Year of Growth
IndiQube Spaces reported robust financial growth in recent years.
- Fiscal 2024 Revenue: ₹867.6 crore, a significant increase from ₹601.2 crore in fiscal 2023.
- FY24 EBITDA: ₹263.4 crore, reflecting strong operational performance.
- Q1 FY25 EBITDA: ₹153 crore, highlighting continued momentum.
These figures underscore the company’s strong position in the evolving workspace solutions industry.
Leadership and Governance
IndiQube’s leadership is spearheaded by Rishi Das and Meghna Agarwal, both recognized for their expertise in the industry. To strengthen its governance framework, the company recently expanded its Board of Directors with the inclusion of four Independent Directors:
- Naveen Tewari: CEO and Founder of InMobi Group.
- Avalur Gopalaratnam Muralikrishnan: A finance expert with over 35 years of experience.
- Rahul Matthan: Partner at Trilegal with three decades of legal experience.
- Sachi Krishana: A seasoned human resources professional with 20 years of expertise.
The expanded board is expected to bring strategic insights and robust corporate governance to IndiQube Spaces.
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Market Potential and Strategic Focus
IndiQube’s IPO comes at a time when the demand for flexible and technology-driven workspaces is on the rise. The company’s focus on sustainable and tech-enabled solutions positions it well in a competitive market.
The funds raised will enable IndiQube to expand its footprint across India, catering to growing demand from enterprises and start-ups seeking adaptable workspace solutions. The repayment of debt will also strengthen the company’s financial health, paving the way for future growth.
Future Outlook
IndiQube Spaces is poised to leverage its IPO proceeds to solidify its market presence and explore new growth avenues. With its innovative offerings, strong client base, and experienced leadership, the company aims to redefine workplace solutions in India.
As the IPO gears up, IndiQube’s journey from a start-up to a market leader serves as a testament to its commitment to transforming the office experience through innovation and customer-centric solutions.