Indiqube Spaces IPO opens on July 23: check key strengths, risks from RHP

Business Standard

22-07-2025

Indiqube Spaces IPO: Workplace solutions provider Indiqube Spaces is set to launch its Initial Public Offering (IPO) on Wednesday, July 23, 2025. The public issue comprises a fresh issue of 27.4 million shares aggregating to ₹650 crore, and an offer for sale (OFS) with promoters divesting up to 2.1 million shares worth ₹50 crore.
Indiqube Spaces IPO will be offered at a price band of ₹225-237 per share. The minimum application size has been set at 63 shares per lot. The issue will remain available until July 25. The company's shares are tentatively scheduled to make their D-Street debut on July 30, 2025.
It is worth noting that Indiqube Spaces will not receive any proceeds from the IPO. All the funds raised will go directly to the selling promoters, after accounting for offer-related expenses and applicable taxes, which will be borne by the respective sellers. Indiqube Spaces, however, proposes to use the fresh proceeds for funding capital expenditure towards establishment of new centers, repayment/pre-payment, in full or in part, of certain borrowings availed by the company, as well as for general corporate purposes.
As investors await the opening of Indiqube Spaces IPO, here are the key strengths and risks outlined in its Red Herring Prospectus (RHP) that every investor should be aware of:
Key Strengths of Indiqube Spaces
One of the leading players in flexible workspace market: The company is well-positioned to benefit and capture the growth in the flexible workspace segment. The company's comprehensive footprint spans 15 cities, including eight Tier-I and seven non-Tier I cities as of March 31, 2025. With over 186,719 seats in 115 centers, Indiqube Spaces offers a comprehensive portfolio that spans workspace leasing and VAS, such as interior design, facility management, and technology-enabled solutions.
Acquisition strategy: The company renovates and upgrades older Grade-B properties in central business districts, transforming them into technology-enabled workspaces. As of March 31, 2025, renovated centers make up 25.22 per cent of its total portfolio.
Prudent business management practices: The company concentrates on leasing large to midsized full buildings over fractional spaces and as of March 31, 2025, 64.71 per cent of its portfolio consists of full buildings. A large number of its properties are in hub and spoke clusters resulting in concurrent allocation of manpower and resources.
Capital efficient model: The company has strategically adopted an asset-light model, focusing on leasing rather than owning properties. This model allows the company to secure 10-year leases with a three-year lock-in period, extendable for another 10 years, ensuring flexibility and control in its arrangements with lessors. The company maintains termination rights in its leases, providing adaptability and risk mitigation in changing market conditions.
Experienced leadership: Indiqube Spaces is led by experienced promoters and a professional management team with experience in the workspace industry and a proven track record of performance. The comapny's promoters are Rishi Das, Meghna Agarwal, and Anshuman Das. Rishi Das, an alumnus of IIT Roorkee, is its Chief Executive Officer and has diverse entrepreneurial experience of over two and a half decades.
Key risks for Indiqube Spaces
Financial performance, future profitability risks: IndiQube Spaces has experienced losses over the last three fiscal years and may continue to incur losses in the future, which could have an adverse impact on its business, operating results, and cash flows.
Exposure to real estate market fluctuations: The company's business is sensitive to fluctuations in the real estate market. It has witnessed a decline in occupancy rates—from 83.68 per cent as of March 31, 2023, to 80.21 per cent as of March 31, 2024. Variations in commercial property prices may significantly affect leasing costs, potentially impacting overall profitability.
Risks related to property ownership: IndiQube does not own the properties where its centers are located. Any defects in property title or ownership may lead to the closure of centers, relocation expenses, and termination of client agreements, all of which could negatively affect the company's business, financial condition, and operational results.
Uncertainty in development plans for new centers: The company has not yet finalised the exact locations for new centers intended to be developed using the net proceeds from the offer.
Impact of changing work culture trends: Evolving work culture trends—such as the growing adoption of remote and hybrid working models—could reduce the demand for plug-and-play workspaces, thereby adversely affecting the company's business, cash flows, and financial condition.
About Indiqube Spaces
Indiqube Spaces is a managed workplace solutions company offering comprehensive, sustainable, and technology-driven workplace solutions dedicated to transforming the traditional office experience. Its diverse solutions range from providing large corporate offices (hubs) to small branch offices (spokes) for enterprises and transforming the workplace experience of their employees by combining interiors, amenities, and a host of value-added services.