IndiQube, a leading workspace provider backed by WestBridge Capital, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a proposed initial public offering (IPO). The offering will raise Rs 850 crore ($89 million), consisting of both a fresh issue of shares and an offer for sale (OFS).
Key Details of IndiQube’s IPO
IndiQube’s IPO comprises a fresh equity issue worth Rs 750 crore, along with an OFS of Rs 100 crore. The OFS will see the company’s co-founders, Rishi Das and Meghna Agarwal, each selling shares worth Rs 50 crore. Notably, no external shareholders are participating in the OFS, which underscores the prominent role the founders are playing in this offering.
As per the DRHP, IndiQube’s largest shareholder is Anshuman Das, who holds 25.32% of the company, followed by Aravali Investment Holding with 22.07%. Other key stakeholders include WestBridge Capital (5.79%), Carenet Technologies (5.15%), and Hirepro Consulting (2.15%). Rishi Das and Meghna Agarwal together own 37.92% of IndiQube.
The company plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The IPO will be managed by ICICI Securities Limited and JM Financial, which will serve as the book-running lead managers.
Use of Proceeds and Financial Performance
IndiQube has outlined the use of proceeds from the fresh issue, which will be directed towards expanding its operations through the establishment of new centers. Additionally, the company intends to use part of the funds to repay borrowings and for other general corporate purposes.
For the first quarter of the ongoing fiscal year, IndiQube reported a revenue of Rs 242 crore. However, the company’s losses stood at Rs 42 crore during this period. The firm has achieved a 43% year-on-year growth in revenue for FY24, reaching Rs 830 crore, up from Rs 580 crore in FY23. Despite the growth in revenue, IndiQube’s losses have surged 72.2%, climbing to Rs 341 crore in FY24, compared to Rs 198 crore in FY23.
The Co-Working Sector’s IPO Momentum
IndiQube’s IPO filing comes at a time when the co-working space sector is seeing increasing activity in the public markets. In a landmark move, Awfis became the first Indian co-working startup to be listed on the stock exchange, and Smartworks recently received SEBI approval for its IPO.
Other co-working companies, including WeWork India, Simpliwork, Table Space, DevX, and IndiQube, are also reportedly preparing for their own IPOs, signaling that the sector is gaining traction with investors.
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