Investing in Indiqube's Initial Public Offering: To buy now or hold off?
Indiqube Spaces, a leading player in the Indian flexible workspace market, has announced its plans for an initial public offering (IPO) to raise approximately ₹700 crore. The IPO price band has been set at ₹225-₹237 per share.
In the financial year 2025 (FY25), Indiqube reported an occupancy rate of 85.1%, with over 1.87 lakh seats and 769 clients across multiple industries. The company's portfolio spans across 8.4 million square feet (msf) in 115 centers spread across 15 cities.
In FY25, Indiqube's operational EBITDA was ₹616.5 crore, marking a 61.4% compound annual growth rate (CAGR) increase from FY23. Revenues from the company's value-added services grew at a CAGR of 40.7% in FY25, accounting for 12.7% of the total revenues.
However, there was a mild dip in Indiqube's EBITDA in FY24. As of March 2025, the company reported a net loss of ₹139.61 crore, a significant decrease from ₹341.50 crore the previous year. This narrowing of losses, coupled with a 27.1% year-on-year income growth to ₹1,102.93 crore, indicates a positive trend for the company.
Comparison with Peers
Indiqube's growth and financials are comparable to other large flexible workspace operators in India. For instance, Smartworks, another key player in the market, has not disclosed its financial details in the available search results. Similarly, Awfis, a leading coworking operator, also lacks recent financial disclosures.
The India flexible workspace market is projected to reach $5.99 billion in 2025, growing at a CAGR of approximately 13.7%. Coworking spaces are expected to grow to $2.84 billion by 2030, with a CAGR of 20.6%. This robust growth potential bodes well for all players in the market, including Indiqube, Smartworks, and Awfis.
Overall Analysis
Indiqube is a fast-growing player in the Indian flexible workspace market, emphasizing scale expansion and cost control. The company's asset-light strategy and focus on upgrading Grade B properties differentiate it strategically.
While peers like Smartworks and Awfis are also key players in this growing market, specific financials and valuations are not available for a direct detailed quantitative comparison from the search results.
Given the high growth forecasts for India's flexible office and coworking markets, all these companies have significant growth potential, with the risk profile tied to their profitability and capital expenditure strategies.
The IPO is open for subscription till July 25, with the fresh issue being used for capital expenditure towards new centers and repaying a portion of its debt. Key contributors to Indiqube's revenue include Bengaluru, Pune, and Chennai. Among Indiqube's clients are Myntra, Zerodha, Siemens, Narayana Health, Juspay, ninjacart, Perfios, and Mettler Toledo.
[1] Indiqube Spaces IPO [2] India Flexible Workspace Market Report [3] Indiqube Spaces Financial Analysis [4] Coworking Market Growth Forecast
- Indiqube Spaces aims to raise approximately ₹700 crore through its Initial Public Offering (IPO), setting its sights on expanding its business in the Indian flexible workspace market.
- In FY25, Indiqube reported an impressive occupancy rate of 85.1%, with revenue growth of 27.1% and a net loss reduction compared to the previous year, showcasing a positive trend in its business.
- Despite the lack of detailed financial disclosures for Indiqube's peers like Smartworks and Awfis, all three companies exhibit significant growth potential in the rapidly expanding Indian flexible office and coworking markets.
- Indiqube's IPO offers a subscription opportunity, with the fresh issue aimed at funding capital expenditure towards new centers and debt repayment, while key revenue contributors are cities like Bengaluru, Pune, and Chennai, with clients spanning multiple industries.
