IndiQube Spaces IPO Good or Bad - Detailed Review

IndiQube Spaces IPO is kicking off its initial public offering, which will be open from July 23, 2025, to July 25, 2025. While considering applying for this IPO, certain questions may arise in your mind, including whether the IndiQube Spaces IPO is good or bad, whether it is worth investing in this IPO, and so on.

This article offers a comprehensive IndiQube Spaces IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

IndiQube Spaces IPO Review

IndiQube Spaces Limited's IPO opens a window into the expanding Indian flexible workspace sector. The company aims to redefine traditional office environments through comprehensive, technology-driven, and sustainable offerings. With a substantial portfolio of 115 centers across 15 Indian cities, including a dominant presence in Bengaluru, the company provides diverse services from interior design and facility management to IT infrastructure, all streamlined through its MiQube tech stack.

Financially, IndiQube has demonstrated robust top-line growth, with revenue from operations climbing to Rs 1,059.29 crore in FY25. While net losses have persisted across the last three fiscal years, the company shows significant improvements in operational efficiency, as evidenced by its surging EBITDA margin of 58.20% in FY25. Its strong Return on Capital Employed (RoCE) of 34.21% in FY25 further underscores efficient capital utilisation, despite the impact of Ind AS 116 on reported net profits.

IndiQube's growth strategy centers on expanding its area under management, improving revenue per square foot through its integrated ecosystem, and solidifying its position as a preferred outsourcing partner for enterprises. It also plans to scale its "IndiQube Bespoke" interior solutions and "Sustainability as a Service" offerings. However, potential investors should consider risks such as high revenue concentration in key cities (Bengaluru, Pune, and Chennai), sensitivity to real estate market fluctuations, consistent net losses, and reliance on leased properties. 

Company Overview of IndiQube Spaces IPO

IndiQube Spaces Limited is a managed workplace solutions company. It aims to redefine traditional workplaces by offering comprehensive, technology-driven, and sustainable office environments. The company provides flexible office spaces, ranging from large corporate hubs to smaller branch offices, across 15 cities in India.

IndiQube has service offerings beyond just leasing space; they include interior design, facility management, and a wide array of value-added services such as IT infrastructure, furniture, food and beverage, and transportation. These services are streamlined through its in-house tech stack, MiQube, which facilitates bookings, service requests, and overall workspace management.

The company employs both backward and forward integration. Backward integration involves renovating assets and turning ageing properties into modern, green workspaces, which made up 29.57% of its portfolio as of March 31, 2025. Forward integration encompasses its B2B and B2C services, with value-added services (VAS) revenue growing significantly.

As of March 31, 2025, IndiQube manages a portfolio of 115 centers (105 operational and 10 under Letter of Intent (LOI)) across 15 cities, covering 8.40 million square feet of area under management (AUM) with a total seating capacity of 1,86,719, with an occupancy rate of 86.50%. Bengaluru accounts for around 65% of its AUM in square foot space and 65 centres.

They derive 11.80% of operational revenue from the top 5 clients as of March 31, 2025. The company primarily leases full buildings, with 64.71% of its portfolio in this format, aiming for better control and efficiency. IndiQube serves over 769 clients, with Global Capability Centers (GCCs) comprising 43.56% of its clientele. As of FY25, the company earns 87.46% from Workspace Leasing and the remaining 12.74% from VAS.

Industry Overview of IndiQube Spaces IPO 

IndiQube Spaces operates within the rapidly expanding flexible workspace sector in India and across the Asia-Pacific (APAC) region. The global flexible workspace market, particularly in APAC, has shown stable growth, with the total volume of flexible space in the APAC region reaching approximately 122 to 124 million sq. ft. as of June 30, 2024. India is one of the largest flexible workspace markets in APAC, with a total stock of over 72 million sq. ft. in Tier 1 cities as of H1CY2024, and its flexible workspace stock currently stands at over 96 million sq. ft. as of Q1CY2025. 

The total flexible workspace is further forecasted to grow to approximately 140 to 144 million sq. ft. across Tier 1 cities by the end of CY2027. The Total Addressable Market (TAM) for flexible workspace operators in India is expected to be a substantial 280 to 300 million sq. ft. (in terms of area) and Rs 73,000 to Rs 96,000 crore by 2027.

Key drivers fuelling this growth include the increasing adoption of hybrid work models, a focus on capital efficiency and cost optimisation by businesses, and the growing startup ecosystem and Global Capability Centers (GCCs) in India. India's demographic advantages, availability of a skilled talent pool at competitive costs, and improving physical and digital infrastructure are expected to further improve its position as a preferred destination for flexible workspace solutions. 

Financial Overview of IndiQube Spaces IPO

The financial performance of IndiQube Spaces over the three fiscal years ending March 31, 2023, 2024, and 2025, reflects strong top-line growth, with improving operational efficiency at the EBITDA level, despite consistent net losses. Revenue from operations increased steadily from Rs 579.74 crore in FY23 to Rs 830.57 crore in FY24 and further to Rs 1,059.29 crore in FY25, indicating robust demand for its flexible workspace solutions. Total income followed a similar upward trend, growing from Rs 601.28 crore in FY23 to Rs 867.66 crore in FY24 and reaching Rs 1,102.93 crore in FY25.

EBITDA (operational) saw significant fluctuation but improved strongly in the latest fiscal year, moving from Rs 236.69 crore in FY23 to Rs 226.34 crore in FY24 before surging to Rs 616.54 crore in FY25. Correspondingly, the EBITDA Margin (Operational) also showed a positive rebound, moving from 40.83% in FY23 to 27.25% in FY24  and significantly increasing to 58.20% in FY25, indicating enhanced operational efficiency.

The company reported net losses across all three fiscal years: Rs 198.11 crore in FY23, widening to Rs 341.51 crore in FY24, and moderating to Rs 139.62 crore in FY25. Consequently, the loss after-tax margin remained negative, at -32.95% in FY23, -39.36% in FY24, and -12.66% in FY25. It is important to note that under Indian Accounting Standards (Ind AS 116), lease liabilities on the balance sheet can front-load depreciation and interest, impacting reported net profit.

In terms of return on capital, Return on Capital Employed (RoCE) demonstrated strength and efficiency, rising from 15.66% in FY23 to 38.52% in FY24 and remaining robust at 34.21% in FY25. Net worth, however, fluctuated, being negative at Rs 308.10 crore in FY23, turning positive at Rs 130.63 crore in FY24, and then marginally negative again at Rs 3.11 crore in FY25.

Overall, IndiQube Spaces exhibits strong revenue growth and significant improvements in operational efficiency, particularly in the latest fiscal year. While net losses persist, the company maintains a strong RoCE, reflecting effective utilisation of capital despite the challenges posed by specific accounting standards.

Strengths and Risks of IndiQube Spaces IPO

Let’s dive into the strengths and risks to assess if the IndiQube Spaces IPO is good or bad for investors.

Strengths of IndiQube Spaces IPO

• Leading Player in a Growing Market: IndiQube has a comprehensive footprint spanning 15 cities, including eight Tier-I and seven non-Tier I cities, with over 1,86,719 seats in 115 centers as of March 31, 2025, positioning it as a leading operator in the expanding Indian flexible workspace segment. It is among the leading operators in Bengaluru, which is currently India's largest flexible workspace market.

• Strategic Acquisition and Value Creation: The company prioritises acquiring full buildings in high-demand micro-markets and undertakes renovation and upgradation of older Grade B properties into technology-enabled workspaces, with renovated centers making up 25.22% of its total portfolio as of March 31, 2025.

• Prudent Business Management with Strong Operational Metrics: IndiQube focuses on leasing large to mid-sized full buildings which stands 64.71% of its portfolio, and boasts a low average monthly net churn rate of (0.23%) as of March 31, 2025 , and achieves a healthy cash EBIT margin of 10.81% in FY25.

• Capital Efficient Model and Risk Mitigation: Operating on an asset-light model with 10-year leases and typically three-year lock-in periods, the company has a capital expenditure of Rs 1,507.00 per square feet as of March 31, 2025, reflecting cost efficiency. Its diversified client base minimizes concentration risk, with the top client accounting for only 3.47% of revenue in Fiscal 2025.

• Experienced Leadership: The company is led by experienced promoters (Rishi Das, Meghna Agarwal, and Anshuman Das) and a professional management team and is backed by prominent investors like WestBridge Capital and individual investor Ashish Gupta.

• Commitment to Green Buildings: The company is dedicated to promoting an ecosystem of green buildings, with 36.44% of its operational area across 29 centers holding green certifications as of March 31, 2025. 

Risks of IndiQube Spaces IPO

• High Revenue Concentration: For Fiscal 2025, 88.84% of IndiQube's revenue from operations was derived from its centers in Bengaluru, Pune, and Chennai collectively. Any adverse developments affecting these locations could significantly impact the business.

• Sensitivity to Real Estate Market Fluctuations: The business is sensitive to real estate market fluctuations and witnessed a decline in its occupancy rate from 83.68% as of March 31, 2023, to 80.21% as of March 31, 2024.

• Consistent Net Losses: IndiQube has experienced net losses for the last three fiscal years Rs 198.10 crore in FY23, Rs 341.50 crore in FY24, and Rs 139.61 crore in FY25, and based on the macroeconomic or dynamic nature, it may continue to incur losses in the future.

• Reliance on Leased Properties with Associated Risks: The company does not own the properties where its centers are located, relying on leased premises. Risks include potential defects in landlord titles, and issues with the stamping and registration of lease agreements, with 22.40% of its active stock being unregistered as of March 31, 2025.

• Significant Competitive Pressures: IndiQube faces significant competitive pressures in the highly competitive workspace solutions industry, competing with large multinational and Indian companies, as well as regional and local players.

• Substantial Capex and Working Capital Requirements: The business has substantial capital expenditure and working capital requirements and may need additional financing, which could increase indebtedness or dilute existing shareholdings.

Strategies of IndiQube Spaces IPO

• Expand Area Under Management: IndiQube aims to expand its commercial real estate portfolio nationwide by adding more cities, including emerging non-Tier I markets, and deepening its presence in existing cities through acquiring additional properties in key micro markets. Their approach involves starting with smaller "spoke" properties in new geographies to assess market demand before scaling up with larger "hub" properties once viability is proven.

• Improve Average Revenue Per Square Feet: The company plans to increase its average revenue per square foot by leveraging its comprehensive workspace solutions ecosystem.

• Preferred Workspace Outsourcing Solutions Partner for Enterprises: IndiQube's strategy is to build a comprehensive workspace solutions ecosystem that caters to the evolving needs of enterprises across various geographies. This includes establishing large corporate hubs, supporting branch offices, renovating existing facilities, and offering VAS, ultimately aiming to redefine the workspace journey through flexible, personalised, on-demand, smart, and sustainable solutions.

• Scale IndiQube Bespoke Offer Interiors Solutions: The company intends to further scale "IndiQube Bespoke" to offer extensive office interior design and build solutions to businesses outside its own workspace ecosystem. This offering allows for customised workspaces, supported by a large catalogue of over 1,000 Store Keeping Units (SKUs) and an interactive design-and-build process at "IndiQube Canvas".

• Expand ‘Sustainability as a Service’ Offerings: Recognising that nearly 52% of completed office stock in Tier-I cities is over 10 years old and that 60% of survey respondents prefer green-certified buildings, IndiQube aims to partner with more landlords and businesses to transition their properties into green buildings. They plan to leverage their expertise in implementing sustainability initiatives, such as energy efficiency, water conservation, and waste management, to generate revenue.

• Increase Client-Base: IndiQube plans to utilise its technology stack, including the "MiQube" platform, to improve workspace efficiency and employee experience for its clients. Going forward, they aim to expand their reach by offering a suite of SaaS products to landlords, property managers, and businesses to streamline property management, reduce operating costs, and find new revenue opportunities.

IndiQube Spaces IPO Vs Peers

IndiQube Spaces operates in a competitive landscape alongside major players like Awfis Space Solutions, Smartworks, and WeWork India. As of Q1CY2025, IndiQube manages 115 centers across 15 cities in India, compared to Awfis with 181 centers across 17 cities. Recently, Smartworks was listed on the bourses.

Financially, in fiscal 2025, IndiQube reported a total income of Rs 1,102.93 crore and a net loss of Rs 139.62 crore. In comparison, Awfis Space Solutions Limited, a listed peer, reported a total income of Rs 1,260.75 crore and a profit after tax of Rs 67.87 crore for FY25.

IndiQube demonstrates strong operational metrics, with an occupancy rate of 85.12% in its rentable centers as of March 31, 2025 , and a steady-state occupancy of 86.50%. This compares favorably to Awfis's occupancy of 73% for FY25. The company's Return on Capital Employed (RoCE) stood at 34.21% in FY25, showcasing efficient capital utilisation. While Awfis reported a RoCE of 38.95% in FY25, IndiQube's figure remains strong.

IndiQube further differentiates itself with a capital-efficient model, highlighting an average capital expenditure per square foot of Rs 1,507.00 as of March 31, 2025 , which is lower than the typical industry benchmark of Rs 2,400 for fit-out costs. Additionally, IndiQube boasts a payback period of 24.87 months from fit-out commencement, which is shorter than the industry's typical 47 to 48 months. 

Objectives of IndiQube Spaces IPO

The offer for IndiQube Spaces Limited includes both a fresh issue and an offer for sale (OFS) by selling shareholders. The selling shareholders, Rishi Das and Meghna Agarwal, are offering equity shares totalling Rs 50 crore.  The net proceeds from the fresh issue of Rs 650 crore are proposed to be utilised for the following primary objectives:

• Funding Capital Expenditure: An estimated amount of Rs 462.65 crore will be used for establishing new centers.

• Repayment/Pre-payment of Borrowings: Rs 93.04 crore will be utilised for the repayment or pre-payment of certain existing borrowings.

• General Corporate Purposes: The remaining proceeds will be used for general corporate purposes, not exceeding 25.00% of the gross proceeds from the Fresh Issue.

IndiQube Spaces IPO Details

IPO Dates

IndiQube Spaces IPO will be open for subscription from July 23, 2025, to July 25, 2025. The allotment of shares to investors will take place on July 28, 2025, and the company is expected to be listed on the NSE and BSE on July 30, 2025.

IPO Issue Price

IndiQube Spaces is offering its shares in the price band of Rs 225 to Rs 237 per share. This means you would require an investment of Rs. 14,931 per lot (63 shares) if you are bidding for the IPO at the upper price band.

IPO Size

IndiQube Spaces is issuing a total of 2,95,35,864 shares, which are worth Rs 700 crores.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on July 28, 2025, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of IndiQube Spaces will be listed on the NSE and BSE on July 30, 2025.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

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