IndiQube Spaces, which is backed by private equity firm WestBridge Capital and operates flexible office spaces across 13 cities in India, is set to raise capital to fuel its expansion plans with an initial public offering that will also see its co-founders selling some stake.
The Bengaluru-based company, founded almost a decade ago, is targeting to raise Rs 850 crore ($100 million) from the public issue. The IPO comprises a fresh issue of shares worth Rs 750 crore and an offer for sale of Rs 50 crore each by co-founders Rishi Das and Meghna Agarwal, the draft red herring prospectus filed by IndiQube showed.
Das and Agarwal hold a stake of nearly 19% each in the company currently. The company did not disclose the percentage share of the stake they plan to sell.
IndiQube joins a few peers to tap the public markets. Keppel-backed Smartworks filed its draft documents with the Securities and Exchange Board of India (SEBI) to raise Rs 550 crore through a public listing in August. Co-working space provider Awfis listed in May after an IPO that was covered 108 times.
IndiQube plans to utilise the proceeds from the fresh issue to fund its capital expenditure plans for establishing new centres, repay or pre-pay its debt and fund general corporate expenses.
The fundraising plans are in line with IndiQube’s earlier plans, as Das had said in an interaction last November that the company expected to raise $75-100 million and begin the process at the start of the next fiscal year. The co-founder had said that IndiQube might hit the market in the middle or latter half of the fiscal year. The focus, however, was expected to be on private equity investors, including existing backer WestBridge, he had said, without disclosing the names of any potential investors.
IndiQube raised its last funding round in April 2022. It secured $30 million (Rs 227 crore then) in fresh funding led by the promoters and existing investor WestBridge in a round that valued the company at about Rs 1,700 crore. The promoters infused about $17 million while the PE firm and angel investor Ashish Gupta contributed the remaining.
Earlier, the managed office space provider had raised $15 million from WestBridge Capital in June 2018. The capital raised then was meant for expansion outside the city, innovation in technology, besides boosting its mobile app as well as brand-building.
The company reported a 40% jump in its revenue from operations during the last fiscal year. It achieved its net sales target in 2023-24, at Rs 841.2 crore (provisional), while increasing its rent yielding area by approximately 0.7 million square feet or about 19%. It clocked revenue of about Rs 240 crore in the April-June period this fiscal year.
IndiQube commands an area under management of about 7.76 million square feet spread across 93 centres and caters to over 700 customers.