Office Space Startup IndiQube IPO Sees 23% Subscription on Day 1 of Bidding

IndiQube, a provider of workspace solutions, saw its IPO begin reasonably well, with the issue being 23% subscribed by 11:15 AM on the first day of bidding.

The BSE data indicates that the IPO garnered bids for 3.8 lakh shares, while 1.71 crore shares were available.

The employees’ portion was oversubscribed by a factor of 1.12, receiving 82,871 bids compared to the 73,891 available.

After this, the retail individual investors (RIIs) segment was fully subscribed at a rate of 102%.  RIIs submitted offers for 3.1 lakh shares, which is equal to the number of shares reserved for them.

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During the initial hours of the first day, non-institutional investors (NIIs) and qualified institutional buyers (QIBs) demonstrated a lukewarm reaction.

NIIs submitted bids for 8.9 lakh shares, while 46.5 lakh shares were reserved for them, resulting in a 19% subscription rate.  The QIBs chose only 882 bids out of the 93.1 lakh shares available.

The IPO of IndiQube, which opened today (July 23), consists of a fresh issue worth INR 650 Cr and an offer for sale totaling INR 50 Cr, making up a total of INR 700 Cr.  Rishi Das and Meghna Agarwal, the two promoters, will be reducing their stakes through an OFS. After the listing, their stake will decrease from 70% to 60%.

The company intends to use INR 462 Cr of the fresh issue of 650 Cr for capital expenditures related to the establishment of new centres, and INR 93 Cr for debt repayment; the rest will be allocated to general corporate purposes.

Only a day prior, the firm completed an anchor round to secure INR 314.3 Cr from eight domestic mutual funds, including Groww, Edelweiss, BNP Paribas, Aditya Birla Sun Life, and Motilal Oswal, among others.

IndiQube’s IPO price band ranges from INR 225 to INR 237, and at the upper limit of this range, the company is valued at a market capitalisation of INR 4,977 Cr (approximately $578 Mn).

IndiQube, established in 2015, provides managed office spaces and offers clients an ‘office in a box’ experience that includes workspace design, interior construction, and a wide range of B2B & B2C services through the use oftechnology.  Additionally, it provides clients and their employees with value-added services.

By the end of FY25, the company was overseeing 8.40 million sq. ft. of space across 115 centers in 15 cities, achieving an occupancy rate of 85.12% and a total capacity of 186,000 seats, catering to 769 clients.

Its occupancy consists of 63% enterprises with 300+ seats, 23% for those with 100-300 seats, and the remaining 13% for enterprises with fewer than 100 seats.  It includes well-known names such as Myntra, upGrad, Moglix, and Ninjacart, among others.

The shareholding pattern of IndiQube before its IPO consists of 70% promoter shareholding, WestBridge with a 27.9% stake, Ashish Gupta holding 0.9%, and ESOPs accounting for 0.7%.  After the listing, the promoters will possess a 60% stake, WestBridge will hold 24.3%, and Gupta will have 0.8%.

Between FY23 and FY25, the company experienced a compound annual growth rate (CAGR) of 35.17%, while its value-added services (VAS) segment grew by 40.6% during this timeframe.  The company’s operating revenue grew 28% year-on-year to INR 1,059.3 Cr in FY25, but it remained unprofitable prior to its IPO.  IndiQube reported a net loss of INR 139.6 Cr, marking a year-on-year decrease of 60%.

In 2025, IndiQube’s revenue-to-rent ratio was 2.4, an increase from 1.9 in 2023.  The company enters into lock-in agreements with landlords that last 10 to 20 years, while the tenant lock-in period is three years.

In terms of financial performance for FY25, IndiQube lagged behind its listed competitors, Awfis and Smartworks.  During the year, Awfis reported a profit of INR 68 Cr on operating revenue of INR 1,207 Cr, whereas Smartworks recorded a loss of INR 63.2 Cr on revenue amounting to INR 1,374.1 Cr.