IndiQube Spaces IPO Opens Today; Retail Category Subscribed 1.78x Within Hours: A Flexible Bet on India’s Future Workspaces

About the Issue:

IndiQube Spaces is set to launch its Initial Public Offering (IPO) to raise Rs 700 crore through the book-building route. The public issue consists of a fresh issue of 2.74 crore shares aggregating to Rs 650 crore and an offer for sale (OFS) of 0.21 crore shares worth Rs 50 crore by the promoters. The IPO will open for subscription on Wednesday, July 23, 2025, and close on Friday, July 25, 2025. The basis of allotment is expected to be finalized by Monday, July 28, 2025, with a tentative listing date on the BSE and NSE set for Wednesday, July 30, 2025.

The price band for the IPO has been fixed at Rs 225 to Rs 237 per share. The minimum application size is 63 shares, translating to an investment of Rs 14,175 for retail investors. For small non-institutional investors (sNII), the minimum bid is 14 lots (882 shares) amounting to Rs 2,09,034, while for big non-institutional investors (bNII), it is 67 lots (4,221 shares), totaling Rs 10,00,377. Additionally, the IPO includes a reservation of up to 63,291 shares for eligible employees, offered at a discount of Rs 22 per share to the final issue price.

See details below:

Use of Proceeds and Promoter Details:

IndiQube Spaces proposes to utilise the net proceeds from the IPO towards key strategic and financial objectives. The company plans to allocate Rs 462.65 crore towards capital expenditure for the establishment of new centres, and Rs 93.04 crore for the repayment or pre-payment, in full or in part, of certain borrowings. The remaining funds will be used for general corporate purposes. Additionally, the IPO is expected to enhance IndiQube's brand visibility and credibility among clients while creating a transparent and liquid public market for its equity shares.

The promoters of IndiQube Spaces Limited are Rishi Das, Meghna Agarwal, and Anshuman Das. As of the date of the offer, the promoter group collectively holds 70.37 per cent of the company’s equity share capital. The post-issue shareholding of the promoters has not been disclosed.

Company Profile:

IndiQube Spaces Limited is a leading managed workplace solutions provider in India, focused on delivering sustainable, technology-driven, and customizable office environments. With a strong entrepreneurial leadership team operating since 1999, the company offers a comprehensive suite of workspace solutions ranging from large corporate hubs to smaller regional spokes. IndiQube’s services go beyond traditional office leasing, integrating smart interiors, essential amenities, and a broad portfolio of value-added services (VAS).

These VAS include green initiatives, facility management, asset maintenance, B2B and B2C services such as catering, transportation, and technology applications. The company aims to redefine the workplace experience for enterprise clients and their employees by creating flexible, functional, and engaging office environments tailored to the evolving needs of modern businesses. IndiQube caters to its clients through contracts for space usage within its centers or through services delivered to third-party clients.

Industry Outlook

India’s commercial real estate (CRE) sector is poised for strong growth, backed by a projected GDP rise of 6.2 per cent in CY2025. Organized office stock stood at 883 million sq. ft. in March 2025 and is expected to reach 1,072 million sq. ft. by 2027. Leasing activity remains healthy, with key demand from Global Capability Centres (GCCs), domestic firms, and sectors like tech, BFSI, and manufacturing. A growing emphasis on modern, sustainable, and amenity-rich workspaces is reshaping the market, with 64 per cent of occupiers now prioritizing green-certified infrastructure.

The flexible workspace segment is expanding rapidly, driven by hybrid work models and cost-efficient strategies. Flex space stock is expected to grow from 96 million sq. ft. to 140–144 million sq. ft. by 2027 in Tier I cities, with a total market potential of Rs 73,000–96,000 crore. Demand is rising across large enterprises, MSMEs, and startups, while non-Tier I cities like Ahmedabad and Indore are emerging as new growth hubs. Despite risks like lease cost inflation and macroeconomic uncertainty, the long-term outlook for both traditional and flexible workspaces remain strong.

Financials 

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Balance Sheet Snapshot

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Key Metrics

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Key ratios

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Listed Peer Comparison 

Strenght and Weakness

Strengths:
Indiqube is a leading player in India’s growing flexible workspace market, operating 115 centers with over 1.86 lakh seats across 15 cities, including Tier-I and non-Tier I markets. It holds a strong presence in Bengaluru, the largest flex space market in India. The company offers a diverse range of workspace solutions such as IndiQube Grow (plug-and-play), IndiQube Bespoke (customized design), IndiQube One (facility management), and IndiQube Cornerstone (property renovation), enhancing its revenue streams. Its asset-light, hub-and-spoke model ensures scalability with capital efficiency, boasting a ROCE of 34.21 per cent in FY25. High occupancy rates (over 85 per cent), minimal brokerage costs, and a CRISIL A+/Stable rating highlight strong operational and financial discipline. Indiqube’s digital tools like MiQube and its sustainability initiatives—including a solar farm and green-certified buildings, further strengthen its value proposition.

Weaknesses:
Despite operational growth, Indiqube has reported losses in FY23–FY25, with a PAT loss of Rs 139.6 crore in FY25 and negative net worth. Revenue concentration in Bengaluru, Pune, and Chennai (88.84 per cent) poses geographic risk. High fixed costs and short-term client contracts increase vulnerability to churn and demand fluctuations. The company’s expansion is based on unaudited internal estimates and lacks third-party appraisal.

Outlook and Valuation
India’s flex workspace market is on a strong growth path, with Tier-I stock projected to reach 140–144 million sq. ft. by 2027 and a total addressable market (TAM) of Rs 73,000–96,000 crore. Rising demand from non-Tier I cities, renovation opportunities in aging office stock, and occupiers’ growing preference for ESG-compliant, managed workspaces provide meaningful tailwinds. Indiqube is well-positioned to benefit from these trends by scaling its value-added services and bespoke solutions. However, macroeconomic uncertainty, the ongoing shift to remote work, and competition from both domestic and global players could pose growth challenges.

At the upper price band of Rs 237, Indiqube is valued at an EV/EBITDA of 13.7x—higher than Awfis (12.9x) and Smartworks (9.5x). On a P/S basis, it trades at 4.7x compared to Awfis’s 3.75x and Smartworks’ 3.5x. While not yet profitable and therefore not valued on a P/E basis, the IPO appears fully priced.

Operationally, the company is scaling well, with revenue growing 27 per cent YoY in FY24 and EBITDA margins at ~58 per cent, outperforming the peer average of ~48 per cent. It also narrowed its net loss from Rs 341 crore in FY23 to Rs 139 crore in FY24. Growth in rentable area and overall operational scale further reflects effective execution. With most IPO proceeds dedicated to expansion, revenue visibility over the long term appears strong.

That said, risks persist. Indiqube continues to face stiff competition from larger incumbents like Awfis, while sustained net losses and high leverage pose financial challenges. Rapid expansion, particularly in non-core geographies, brings execution and lease renewal risks.

Recommendation:
Given Indiqube’s enterprise-focused business model, robust operating metrics, and improving financial efficiency, the IPO offers long-term potential. However, considering the current losses, stretched valuation, and intensifying competition, we recommend an “Avoid for now” stance. Investors may consider revisiting the stock post-listing, once there is greater earnings visibility and a more reasonable valuation.