India Flex Office Industry to Raise ₹7,000 cr Through IPO; LG Invests Amid IPO Delay, Veritas Gets the Nod

Entrepreneur

12-05-2025

India's flexible (flex)/ co-working office space supply will increase at 21-22 per cent CAGR, and the sector is set to raise over INR 7,000 crore through 5 major initial public offers (IPOs), said a report by the Investment Information and Credit Rating Agency of India (ICRA).
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
India's flexible (flex)/ co-working office space supply will increase at 21-22 per cent CAGR, and the sector is set to raise over INR 7,000 crore through 5 major initial public offers (IPOs), said a report by the Investment Information and Credit Rating Agency of India (ICRA).
The Indian IPO market saw Awfis Space Solutions go public on the mainboard, including a total of 15,637,736 equity shares with a face value of INR 10 each, aggregating up to INR 598.93 Crores. The issue was priced at INR 383 per share.
Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA, said, "The demand for such spaces has increased at a brisk pace, driven by flexibility, short-lease tenures, and lower upfront cost in terms of capex for tenants. While several flex office operators entered the space in recent years, the market remains organised with the top five players accounting for 40% of the flex office space in FY2024."
IT-related firms have been leading the demand, according to the report, which is followed by sectors such as engineering, manufacturing, and start-up companies over the last 2-3 years.
IT/ITeS, engineering- manufacturing, and start-ups accounted for around 67 per cent of the flex-space leasing in 2024, said the report.
"This segment has seen one www.icra.in Sensitivity Label: Public successful IPO via the Awfis and is set to witness five major IPOs in the next 12-18 months, which are projected to raise over INR 7,000 crore," Reddy added.
Data from the report showcased that there are over 450 flex operators currently in India with more than 2000 unique centre locations. Citywise, Bengaluru holds the highest supply of both commercial office and flexible workspace markets in India, accounting for 32 per cent of the total available flexible workspace supply across the top six cities.
LG Invests Amid IPO Delay
LG Electronics India has now begun construction on its new plant in Sri City, Andhra Pradesh, with a USD 600 million dollar investment.
The project announcement comes after the company reportedly delayed its listing plans, citing market conditions, despite securing the market regulator Securities and Exchange Board of India's (SEBI) approval.
The company had filed preliminary papers with Sebi in December 2024, proposing to sell over 10.2 crore shares, which amounts to a 15 per cent stake held by the parent company. While the total issue size was not officially disclosed, sources told The Times of India that the IPO is pegged at around INR 15,000 crore.
According to reports, the Indian arm of LG is mulling its IPO in the second or third quarter of FY26.
Veritas Gets the Nod
Veritas Finance, a non-banking financial company (NBFC), has received approval from SEBI for its initial public offering (IPO).
The listing will consist of a fresh issue of equity shares worth INR 600 crore and an offer for sale (OFS) of equity shares up to INR 2,200 crore, with a face value of INR 10. The IPO will also consist of reservation of shares for eligible employees.
According to Veritas, the proceeds from the listing will be used towards boosting the company's capital, aiding future business expenses, and adding to the company's retail lending service.
ICICI Securities, HDFC Bank, Jefferies India, Kotak Mahindra Capital Company, and Nuvama Wealth Management are the lead managers for the IPO, with KFin Technologies announced as the registrar for the issue.