Coworking firm IndiQube gets SEBI nod for Rs 850 Cr IPO

Coworking firm IndiQube Spaces has secured approval from market regulator Securities and Exchange Board of India (SEBI) last week to raise Rs 850 crore through an initial public offering (IPO).

The Bengaluru-based managed workplace solutions company, which filed its draft red herring prospectus (DRHP) in December 2024, plans to raise Rs 750 crore through a fresh issue of equity shares and Rs 100 crore via an offer for sale (OFS).

Proceeds from the fresh issue will be used for capital expenditure (Rs 426.6 crore), debt repayment (Rs 100 crore), and general corporate purposes.

Founded in 2015 by Rishi Das and Meghna Agarwal, IndiQube operates 103 centres across 13 cities, including six Tier II cities, with a portfolio covering 7.76 million square feet of area under management and a seating capacity of 172,451, as of June 30, 2024.

ICICI Securities Limited and JM Financial Limited are the book-running lead managers for the IPO, with the equity shares set to be listed on the BSE and NSE, the company said in a statement.

Backed by WestBridge Capital and prominent investor Ashish Gupta, the company serves clients ranging from large corporates to startups, including Myntra, upGrad, Zerodha, No Broker, Redbus, Juspay, and Perfios.

The SEBI, on the other hand, has temporarily paused the review process for its competitor, WeWork India's initial public offering. The market regulator, on its website, said the “issuance of observations” has been placed on hold, though no specific reasons were provided. The Embassy Group-backed company had submitted its draft IPO papers on January 31.

WeWork India's IPO is entirely an offer for sale (OFS) of up to 4.37 crore equity shares, according to the company's DRHP. Under the OFS, promoter Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd will offload shares. Since it is an OFS, the company will not receive any proceeds from the IPO.