CoWorking Company IndiQube Eyes Public Markets with Rs 850 Crore IPO Filing

Flexible workspace provider IndiQube has taken its first step toward going public, filing a Draft Red Herring Prospectus with SEBI for an IPO worth Rs 850 crore. The offering comprises a fresh issue of Rs 750 crore and an offer for sale of Rs 100 crore, marking a significant milestone in the company's growth journey.

Unlike other startups, IndiQube's co-founders, Rishi Das and Meghna Agarwal, will divest shares worth Rs 50 crores each. This shows the company's commitment to its future. Even though they have other investors, their shares are not being divested to maintain investor confidence.

IndiQube's ownership structure reveals a diverse mix of stakeholders. Anshuman Das holds the bulk stake at 25.32%, followed closely by Aravali Investment Holding at 22.07%. Then, the co-founders Rishi Das and Meghna Agarwal jointly control 37.92% of the company. Other investors include WestBridge Capital and Carenet Technologies, which hold 5.79% and 5.15%, respectively.

IndiQube's financial trajectory shows ambitious growth coupled with significant investments. It reported revenue of Rs 830 crore in FY24, marking a 43% increase from the previous year. However, this expansion came at a price with increased losses of Rs 341 crores, sharply contrasting the loss of Rs 198 crore in FY23. The first quarter of the current fiscal year saw revenue of Rs 242 crore with losses of Rs 42 crore.

ICICI Securities and JM Financial will manage the dual listing on NSE and BSE, with proceeds earmarked for expanding new centers, debt reduction, and general corporate purposes. The IPO positions IndiQube to join Awfis as the second listed co-working space provider in India. Several competitors, including WeWork India, Simpliwork, and Table Space, are reportedly preparing for public offerings.

This move comes at a time when the flexible workspace sector is experiencing significant transformation, with Smartworks recently receiving SEBI approval for its IPO. IndiQube's public offering could set new benchmarks for the industry and potentially trigger a wave of similar listings in the co-working space segment.