Latest news with #IndiQube
Time of India
16 hours ago
- Business
- Time of India
IndiQube slumps about 15% in trading debut on July 30
Shares of IndiQube Spaces fell nearly 15% in their trading debut on Wednesday, as broader markets were muted ahead of a looming U.S. tariff deadline, valuing the Indian workspace solutions provider at 44.13 billion rupees ($506 million). IndiQube's debut is among a dozen Indian IPOs this month, but only the second to list at a discount. The firm's $80.3 million IPO was subscribed 12.4 times last week, drawing strong demand from both retail and institutional investors. Its shares opened at a 9% discount to the IPO price of 237 rupees in Mumbai. They were down 11.3% at 210.15 rupees at 11:30 a.m. IST. India's equity benchmarks were flat on caution ahead of the U.S. Federal Reserve's policy decision and a key tariff deadline later this week. IndiQube is well-placed to ride India's growing demand for office space, but its dependence on the cities of Bengaluru , Pune , and Chennai - which generate 89% of its revenue - heightens its vulnerability to regional slowdowns, analysts at Deven Choksey Research said. Rising competition from listed peers like Awfis, Smartworks, and the IPO-bound WeWork India could also weigh on pricing power, they said. Smartworks listed at a 14% premium on July 17, as investors bet on surging demand for integrated office solutions in India. Its shares have fallen about 6% since then.
Reuters
2 days ago
- Business
- Reuters
Indian workspace firm IndiQube slumps about 15% in trading debut
July 30 (Reuters) - Shares of IndiQube Spaces ( opens new tab fell nearly 15% in their trading debut on Wednesday, as broader markets were muted ahead of a looming U.S. tariff deadline, valuing the Indian workspace solutions provider at 44.13 billion rupees ($506 million). IndiQube's debut is among a dozen Indian IPOs this month, but only the second to list at a discount. The firm's $80.3 million IPO was subscribed 12.4 times last week, drawing strong demand from both retail and institutional investors. Its shares opened at a 9% discount to the IPO price of 237 rupees in Mumbai. They were down 11.3% at 210.15 rupees at 11:30 a.m. IST. India's equity benchmarks were flat on caution ahead of the U.S. Federal Reserve's policy decision and a key tariff deadline later this week. IndiQube is well-placed to ride India's growing demand for office space, but its dependence on the cities of Bengaluru, Pune, and Chennai - which generate 89% of its revenue - heightens its vulnerability to regional slowdowns, analysts at Deven Choksey Research said. Rising competition from listed peers like Awfis ( opens new tab, Smartworks ( opens new tab, and the IPO-bound WeWork India ( opens new tab could also weigh on pricing power, they said. Smartworks ( opens new tab listed at a 14% premium on July 17, as investors bet on surging demand for integrated office solutions in India. Its shares have fallen about 6% since then. ($1 = 87.21 Indian rupees)
Business Standard
2 days ago
- Business
- Business Standard
Indiqube Spaces slides on debut
Shares of Indiqube Spaces were currently trading at Rs 213.25 at 10:22 IST on the BSE, representing a discount of 10.02% compared with the issue price of Rs 237. The scrip was listed at Rs 218.70, exhibiting a discount of 7.72% to the issue price. So far, the stock has hit a high of Rs 222.75 and a low of Rs 201.55. On the BSE, over 4.84 lakh shares of the company were traded in the counter so far. The initial public offer of Indiqube Spaces was subscribed 12.47 times. The issue opened for bidding on 23 July 2025 and it closed on 25 July 2025. The price band of the IPO is fixed between Rs 225 and 237 per share. The issue comprised both an issue of fresh equity aggregating to Rs 650 crore and an offer for sale aggregating to Rs 50 crore. Of the net proceeds from the fresh issue, Rs 462.649 crore will be used for funding capital expenditure towards the establishment of new centers; Rs 93.035 crore towards repayment/prepayment/redemption, in full or in part, of certain borrowings availed by the company; and the balance for general corporate purposes. Total outstanding borrowings as of May 31, 2025, were Rs 332.079 crore on a consolidated basis. IndiQube Spaces is a managed workspace solutions provider offering tech-driven, sustainable office spaces. As of March 31, 2025, the company operated 115 centers across 15 cities with a total portfolio of 8.40 million sq. ft. and a seating capacity of 1.86 lakh. It has a strong presence in Bengaluru and Chennai, comprising over 79% of its total area under management. IndiQube primarily caters to enterprise clients, including Global Capability Centers, and maintains high occupancy and long lease tenures. The company earns revenue through workspace leasing and value-added services like F&B and IT support. Ahead of the IPO, Indiqube Spaces on 22 July 2025 raised Rs 314.32 crore from anchor investors. The board allotted 1.36 crore shares at Rs 237 each to 29 anchor investors. The firm reported a consolidated net loss of Rs 139.62 crore and sales of Rs 1,059.29 crore for the twelve months ended on 31 March 2025.
Mint
4 days ago
- Business
- Mint
Coworking IPO boom: Can India's flexi-office giants turn profitable?
On 17 July, Smartworks Coworking Spaces Ltd listed on the stock exchanges and the shares traded marginally above their issue price. The coworking space provider was following in the footsteps of its industry peer Awfis Space, which listed in May 2024 and has gained 60% from its issue price. Another leading player, IndiQube, is expected to list on 31 July, while the biggest coworking player in India by revenues, WeWork India, is expected to go public in August. Riding a post-covid surge in customer acceptance, the sector's business models are rapidly maturing. They are all in the throes of trying to turn profitable—and sustainably so—amid a rapid scale-up. Coworking spaces have undergone a dramatic transformation in the years following the pandemic. The top six Indian cities together boasted 32 million sq ft of flexible office space in March 2020, as per Icra Research. This is likely to have soared to 85 million sq ft by March 2025, growing by an average rate of 22% a year. Icra expects this growth to continue until March 2027, and vacancy levels to remain low, in the 15-17% band. Once seen as catering to individuals and small teams, coworking office spaces are increasingly on the agenda even for medium and large establishments. This wider acceptance is driving a change in customer profile. Until March 2020, nearly 70% of the occupancy in coworking spaces were with the information technology (IT) and IT-enabled services (ITES) sectors. In four years, this dropped to 39%, and startups as well as sectors beyond engineering and financial sectors have become clients. Benefit of size Larger customers are a win-win arrangement for both coworking companies and customers (i.e., businesses taking up the spaces). For customers, it frees them up from the more expensive proposition of owning their own space, while facilitating a flexible and hybrid model of working that many employees have come to prefer. For coworking space providers, larger clients translate to relatively less effort on the sales side and more surety on the revenue side, especially if they can negotiate longer tenures in such deals. For both Smartworks and IndiQube, about 60% of the revenue is coming from clients that have taken up more than 300 seats each. Including clients that have taken up 100-300 seats as well, the share jumps to 85-88%. Such scale in how they earmark their office spaces is a big way in which coworking companies are optimising their revenue and sales efforts. Journey to profits These companies are also exploring new cost-side strategies. There is a conventional 'straight lease" operating model, in which coworking companies typically lease bare-shell properties for extended periods (often 10 years with a 3-5 year lock-in), fit them out, and then offer them to customers. This is the principal model for both WeWork India and Smartworks. Another emerging model is the 'managed aggregation" model, which Awfis is additionally adopting. Here, the space owner bears the fit-out costs, in part or in full, in return for a fixed guarantee, plus a share in revenue or profits. This reduces the capital requirement for coworking firms. At present, these companies are making healthy margins at the operational level, but are struggling to generate net profits. In their business model, capital investments (in fit-outs) are front-loaded and depreciated over time. Being a relatively new and expanding business means this burden is large right now. Exits amid expansions The four coworking companies named earlier, which have all gone public or are about to do so, are all generating strong cash flows at an operational level. That's because coworking spaces typically charge customers upfront. Those strong cash flows, boosted by periodic fundraises, have gone a significant way in enabling them to finance their expansion and also manage debt. As a result, other than IndiQube and to some extent Smartworks, the other two are not looking to use the IPO proceeds for expansion. In fact, in all four companies, promoters and investors have sold their shares in their IPO, a transaction in which no money goes to the company. While the offer for sale (shares sold by promoters and investors) is 80-100% of the issue for Awfis and WeWork India, it is smaller in case of the other two, with a greater share of the proceeds going to the company. Capital infusion or not, converting expansions into profits will take time and will be a key marker of how the market values coworking space providers. is a database and search engine for public data.
Economic Times
7 days ago
- Business
- Economic Times
IndiQube leases 3.2 lakh sq ft in Bengaluru, targets AUM of 11.47 mn sq ft by FY28
Agencies Representative Image. Flexible managed office space provider IndiQubeSpaces Limited has leased approximately 320,000 sq ft spread across three towers in the Central Business District (CBD) of Bengaluru in a strategic move to deepen its footprint in India's largest flexible workspace market. The space, branded as IndiQube Symphony, is part of a renovate-and-upgrade project secured on a 15-year lease. This development is part of IndiQube's broader growth strategy funded through Rs 650 crore being raised as fresh capital from an IPO, of which Rs 462.6 crore has been earmarked for capex towards new centres. With the fresh fund raise, the company aims to add 3 million sq ft of flexible workspace stock over the next three years, taking its area under management (AUM) to 11.47 million sq ft by FY28.'Bengaluru is expected to account for a significant chunk of this growth, with 1.79 million sq ft of new workspace stock planned over the period. IndiQube's total AUM in Bengaluru is projected to rise to 7.22 million sq ft,' said a source aware of the plans. The firm currently has around 29 million sq ft of flexible workspace inventory as of Q1CY25. The company's expansion strategy also includes other key cities. Its Chennai portfolio is set to increase by 740,000 sq ft, while tier-2 cities will see an additional 360,000 sq ft over the same period. As of March 31, 2025, IndiQube operated 115 centres across 15 cities, managing 8.4 million sq ft of AUM with 186,719 seats. Of this, Bengaluru contributed 65 centres and 5.43 million sq ft of AUM. 'IndiQube's two-pronged growth approach includes deepening presence in existing tier-1 cities such as Mumbai, Hyderabad, Noida, Gurgaon, Pune and Chennai, while also expanding into emerging tier-2 markets using its hub-and-spoke model,' he said. The model allows the company to test markets with smaller properties and scale up to larger centres upon achieving operational robust capital backing, IndiQube is positioning itself as a key player in India's fast-evolving managed workspace segment. The company plans to add 1.29 million sq ft in FY26, 1.24 million sq ft in FY27 and 0.54 million sq ft in FY28, with projected capex of Rs 194.4 crore, Rs186.8 crore and Rs 81.3 crore, managed workplace solutions company on Wednesday raised over Rs 314.32 crore from anchor investors at Rs 237 per equity share, as per an exchange filing. Some of the key anchor investors who were allocated equity shares are Aditya Birla Sun Life MF, Ashoka WhiteOak ICAV, WhiteOak Capital, Invesco India ELSS Tax Saver Fund, Bandhan Large & Mid Cap Fund, MotilalOswal Large Cap Fund, Malabar India Fund and Malabar Midcap Capital through its group companies Aravali Investment Holdings, WestBridge AIF I, Konark Trust and MMPL Trust has a pre-offer shareholding of 27.95% in the company and is not diluting any reported a total income of Rs 1,103 crorein FY25, recording a CAGR of 35% from FY23. The company's FY25 EBITDA stood at Rs 660 crorewith a RoCE of 34.21%, cash EBIT margins of 10.81% with an occupancy rate of 86.50% in steady state centres. As per IGAAP accounting standards, the company has been PAT positive and has paid income tax to the tune of Rs 7.7 crore and Rs 8.4 crore in FY24 and FY25, respectively. According to Colliers, India's office market scaled up in H1 2025 with a 24% share for flex spaces. Flex leasing accounted for 6.5 million sq ft in the first half—up 48% year-on-year—and now contributes 19% to the overall leasing volume, up from 15% a year ago. The second quarter alone saw 4.3 million sq ft of flex leasing, a 65% jump over Q2 2024, making it one of the segment's best-performing quarters to date. Bengaluru accounted for one-third of Q2's flex activity, but other cities like Mumbai, Hyderabad and Chennai also saw a significant uptake, reflecting the segment's growing geographical spread and mainstream appeal.
