Indiqube Spaces IPO subscribed 12x on Day 3; GMP declines

Indiqube Spaces IPO subscribed 12x on Day 3; GMP declines

The maiden public issue of workplace solutions company IndiQube Spaces has been subscribed more than 12 times its offer size on its third day of public bidding. Qualified Institutional Buyers (QIBs) lead the subscription race, by booking their reserved portion over 14 times on July 25 so far.

The Rs 700-crore IPO received bids for nearly 21.15 crore shares, as against the offer size of 1.71 crore shares, according to data on NSE. Non-institutional investors booked their reserved portion over 8 times. Retail investors have subscribed their reserved portion 12.55 times.

IndiQube Spaces IPO GMP:

Despite the strong investor interest, the unlisted shares of the Bengaluru-based company were trading with a grey market premium (GMP) of a little over 4 percent over its IPO price at Rs 237 apiece, according to Investorgain. This is significantly lower than the 17 percent GMP earlier quoted by the site before the IPO opened for public bidding.

According to IPO Watch, the unlisted shares of the WestBridge Capital-backed company were trading with a GMP of nearly 6 percent over the IPO price at Rs 237 apiece.

Key things to know about IndiQube Spaces IPO:

Indiqube Spaces had launched its IPO to raise Rs 700 crore from the capital markets through a fresh issue of shares worth Rs 650 crore and an offer for sale worth Rs 50 crore by promoters and founders Rishi Das and Meghna Agarwal, at a price band of Rs 225-237 per share.

Investors could apply for a minimum of 63 shares, requiring an investment of Rs 14,931 at the upper price band, and in multiples thereafter. The allotments will likely be finalized on July 28, and the shares will be listed on BSE and NSE on July 30.

Indiqube Spaces seeks a valuation of Rs 4,977 crore through the IPO, and intends to spend Rs 462.6 crore out of fresh issue proceeds for establishment of new centers. Further, Rs 93 crore will be used for repaying debt, and the remainder funds for general corporate purposes.

Should you apply?

Bajaj Broking in its note said that Indiqube Spaces operates on a "lease-not-own" model, strategically acquiring properties in high-demand micro-markets and transforming them into flexible workspaces. "At the upper end of the IPO price band, the company is valued at 4x, 5x, and 7x its FY25, FY24, and FY23 sales, respectively—largely in line with its listed peer, Awfis Space, which trades at 4x, 5x, and 8x sales for the same periods. In terms of cash profitability, IndiQube reported ₹3,461 million in FY25, ₹505 million in FY24, and ₹1,003 million in FY23, despite remaining loss-making at the PAT level," the domestic brokerage said.

Yash Chouhan, Research Analyst at INVasset PMS, said, "As commercial real estate pivots toward flexible formats post-COVID, Indiqube’s blend of tech-led customization, long client tenures, and deep micro-market presence offers a differentiated play. Sustaining profitability while scaling, especially in non-core cities, will be a key investor watchpoint post-listing."

Anchor Book:

A day before the IPO opened for public bidding, Indiqube Spaces raised Rs 314.3 crore from 29 institutional investors via anchor book on July 22. Marquee institutional investors like Tocu Europe, BNP Paribas Financial Markets, Societe Generale, Aditya Birla Sun Life AMC, Ashoka Whiteoak, Invesco, Bandhan Mutual Fund, Motilal Oswal AMC, Malabar India Fund, Axis Max Life Insurance, Edelweiss, Baroda BNP Paribas MF, and Grow Mutual Fund participated in the anchor book.

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