Workspace solutions provider IndiQube has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The move highlights the company’s ambition to capitalize on India’s growing demand for flexible workspaces.
The IPO comprises a fresh issue of equity shares worth Rs 750 crore (approximately $89 million) and an offer for sale (OFS) of shares amounting to Rs 100 crore. As per the DRHP, co-founders Rishi Das and Meghna Agarwal will each divest Rs 50 crore worth of equity through the OFS. Notably, no external shareholders participate in this sale, emphasizing the founders’ central role in the offering.
Key Shareholders and Structure
IndiQube’s shareholder structure, outlined in the DRHP, shows Anshuman Das as the largest stakeholder, holding 25.32%. Aravali Investment Holding follows with 22.07%, while WestBridge Capital, Carenet Technologies, and Hirepro Consulting own 5.79%, 5.15%, and 2.15%, respectively. The co-founders collectively hold a substantial 37.92% stake in the company.
The company’s shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). ICICI Securities Limited and JM Financial will act as the book-running lead managers for the IPO.
Utilization of Funds
IndiQube plans to use the proceeds from the fresh issue for several strategic purposes, including the establishment of new centers, repayment of outstanding borrowings, and general corporate expenses. These initiatives aim to solidify the company’s position in the competitive co-working industry.
Financial Performance
In the first quarter of the current fiscal year, IndiQube reported revenue of Rs 242 crore, with losses amounting to Rs 42 crore. For the full FY24, the company achieved a 43% year-on-year growth in revenue, reaching Rs 830 crore, up from Rs 580 crore in FY23. However, this growth came at the expense of profitability, with losses escalating to Rs 341 crore in FY24, a 72.2% increase from Rs 198 crore in FY23.
Competitive Landscape
IndiQube joins a growing list of co-working companies preparing for IPOs amid increasing demand for flexible workspaces. Awfis was the first Indian co-working startup to go public, while Smartworks has recently received SEBI’s approval for its IPO. Other major players like WeWork India, Simpliwork, Table Space, and DevX are also reportedly gearing up for public offerings.
IndiQube’s IPO is poised to make a significant impact on India’s rapidly expanding co-working space market, with its strong revenue growth and strategic plans for expansion signalling a promising future.
