New Delhi, July 25 -- The initial public offering of IndiQube Spaces Ltd, a co-working and flexible office space provider backed by private equity firm WestBridge Capital, was covered 12.33 times on the third and final day of bidding on Friday.
The issue of about 17.15 million shares, excluding the anchor allotment portion, received bids for 211.5 million shares, worth Rs 5,012 crore (about $580 million) at the upper end of its price band, stock-exchange data showed.
The portion reserved for institutional investors was covered 14.35 times while non-institutional investors' quota was subscribed 8.24 times. Retail investors bid for 12.55 times the shares set aside for them.
Ahead of the IPO, the Bengaluru-based company issued 13.26 million shares to anchor investors to raise Rs 314 crore. It issued the shares at the upper end of its price band of Rs 225-237 apiece to mutual funds, insurance companies and foreign institutions.
Overall, the Rs 700-crore ($81 million) IPO comprised a fresh issue of shares to raise Rs 650 crore, down from Rs 750 crore proposed earlier when it filed its draft documents, and an offer for sale of Rs 50 crore by IndiQube founders Rishi Das and Meghna Agarwal. Das and Agarwal each own an 18.84% stake in the company currently.
Another co-founder, Anshuman Das, owns 25.15% of the company while WestBridge holds 27.95% via two entities. Neither of them is selling any of their stake in the IPO.
IndiQube, founded almost a decade ago, will command a valuation of Rs 4,977 crore ($578 million) at the upper end of its price band, according to back-of-the-envelope calculations taking into account the fresh issue.
VCCircle reported last week that WestBridge is sitting on strong returns on its investment in IndiQube. WestBridge first invested in the company in 2018 as part of the company's Series A round of funding. It invested about Rs 90 crore at the time. The PE firm then invested about Rs 100 crore in IndiQube as part of a Series B round in 2022.
Founded in 2015, IndiQube manages a portfolio of 115 centres across 15 cities, covering 8.40 million sq. ft. of area under management and a total seating capacity of 186,719 as of March 31.
IndiQube plans to utilise Rs 462.6 crore from the fresh issue to fund its capital expenditure plans for establishing new centres, Rs 93 crore to repay its debt and another Rs 94 crore for general corporate expenses. The company clocked revenue of Rs 1,059.3 crores in 2024-25, an increase of 28% over the previous year.
The company will join a few peers on the public markets. Singapore's Keppel-backed Smartworks went public earlier this month while co-working space provider Awfis listed in May last year after an IPO that was covered 108 times. WeWork's India franchisee, controlled by Embassy Group, received regulatory approval for the IPO earlier this week.
ICICI Securities and JM Financial are managing IndiQube's IPO.
Published by HT Digital Content Services with permission from VC Circle.