IndiQube IPO Subscribed 3x on Day 3; GMP Slips Despite Retail Buzz The INR 700 crore initial public offering received bids for more than 5.37 crore shares against an offer size of 1.71 crore shares, as per data available on the NSE.
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The maiden IPO of workplace solutions provider IndiQube Spaces was subscribed over three times its offer size on July 25, the third day of public bidding, with retail investors continuing to lead the charge. As of today, the retail portion was nearly nine times subscribed, highlighting strong investor interest in the Bengaluru-based company.
The INR 700 crore initial public offering received bids for more than 5.37 crore shares against an offer size of 1.71 crore shares, as per data available on the NSE. Following retail investors, non-institutional investors (NIIs) subscribed to their allotted portion 2.77 times, while Qualified Institutional Buyers (QIBs) bid 1.42 times their reserved quota.
Despite robust demand, the company's unlisted shares were quoting only a modest premium in the grey market. According to IPO Watch, the WestBridge Capital-backed firm's shares traded at a grey market premium (GMP) of nearly 6 per cent over the IPO price of INR 237. Investorgain pegged the GMP slightly lower, at just over 4 per cent, a sharp drop from the 17 percent premium reported before the issue opened.
IndiQube is aiming to raise INR 700 crore through this public offering, comprising a fresh issue of INR 650 crore and an offer for sale of INR 50 crore by promoters Rishi Das and Meghna Agarwal. The IPO is priced in the range of INR 225-237 per share.
At the upper end of the price band, investors need to apply for a minimum of 63 shares, translating into a starting investment of INR 14,931. The share allotment is expected to be finalized on July 28, with the listing scheduled for July 30 on both NSE and BSE.
The company is targeting a valuation of INR 4,977 crore through the IPO. Of the fresh proceeds, INR 462.6 crore will be used to set up new centres, Rs INR crore is earmarked for debt repayment, and the rest will go towards general corporate purposes.
Bajaj Broking, in its analysis, noted that IndiQube operates a "lease-not-own" model, acquiring and converting spaces in high-demand micro-markets into flexible workspaces. At the top end of the IPO price range, the company is valued at 4x, 5x, and 7x its FY25, FY24, and FY23 sales, respectively, comparable to its listed peer Awfis Space.
Though still loss-making at the PAT level, IndiQube reported strong cash profitability: INR 3,461 million in FY25 (projected), INR 505 million in FY24, and INR 1,003 million in FY23.
Stock-broking platform Zerodha highlighted potential risks, noting that IndiQube's performance could be sensitive to fluctuations in real estate costs and its dependence on third-party vendors for materials and interiors, which could affect operational efficiency.
