IndiQube Initial Public Offering (IPO) Subscribed by 87% on Its First Day
IndiQube Spaces, a managed office space provider based in Bengaluru, has seen a robust response from retail investors in its initial public offering (IPO), while qualified institutional buyers (QIBs) have shown tepid interest.
The portion reserved for retail individual investors (RIIs) was oversubscribed 3.4 times, receiving bids for 1.05 crore shares against 31 lakh shares on offer. This strong interest from retail investors contrasts sharply with the weak institutional demand, with QIBs opting for only 6% subscription on the first day.
The IPO opened on July 23 and comprises a fresh issue of INR 650 crore and an offer for sale of INR 50 crore. As of the end of FY25, IndiQube managed 8.40 million square feet of space across 115 centers in 15 cities, serving 769 clients with an 85.12% occupancy rate and a total capacity of 1.86 lakh seats.
The sector in which IndiQube operates is Real Estate Tech. The company offers an 'office in a box' experience, including workspace design, interior build-out, and a variety of B2B & B2C services. IndiQube's operating revenue rose 28% year-on-year to INR 1,059.3 crore in FY25, and the company has grown at a compound annual growth rate (CAGR) of 35.17% between FY23 and FY25.
Post-listing, the promoters, Rishi Das and Meghna Agarwal, will hold 60% stake, followed by WestBridge with 24.3% and Gupta with 0.8%. Both promoters will be divesting their stake via an offer for sale, and their stake will be diluted to 60% from 70% earlier.
The portion reserved for non-institutional investors (NIIS) was oversubscribed 2.8 times, with 2 lakh bids against 73,891 on offer, translating to 78% subscription. The overall IPO was fully subscribed by day two, led by retail investors and full NII subscription, with QIBs still showing low participation at around 6%.
IndiQube's IPO is valued at a market capitalisation of INR 4,977 crore (about $578 million) at the upper end of the issue price. The company has raised a total funding amount of $45.3 million and operates under 10-20-year lock-in agreements with landlords, while its tenant lock-in period is three years.
The IndiQube IPO is an exciting development in the Real Estate Tech sector, and the strong retail interest indicates confidence from individual investors. However, the tepid QIB response may reflect institutional caution. It will be interesting to see how the IPO performs in the coming days and what impact it will have on the sector as a whole.
Retail individual investors (RIIs) demonstrated significant interest in investing in IndiQube Spaces, with the portion reserved for them being oversubscribed 3.4 times, indicating confidence from individual investors in the Real Estate Tech sector. Contrastingly, qualified institutional buyers (QIBs) expressed tepid interest, with only a 6% subscription on the first day, potentially signifying institutional caution.
%20Subscribed%20by%2087%25%20on%20Its%20First%20Day){kind=link}