Indiqube Spaces shares to list tomorrow, GMP signals muted market debut; should you buy, sell or hold?

Indiqube Spaces IPO

The shares of Indiqube Spaces are set to debut of Dalal Street tomorrow (July 30). The Rs 700-crore IPO was subscribed more than 12 times its offer size between July 23 and July 25.

Grey market trends however indicate a muted listing for the shares of the Bengaluru-based company. Ahead of listing, the unlisted shares of the company were trading almost flat with a 0.42 percent grey market premium (GMP) over its IPO price at Rs 238 apiece, according to data on 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 the GMP of around 2.5 percent over its IPO price at Rs 243 apiece.

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.

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.

While the valuation seems slightly rich, it is justified given the sector's growth prospects, said Mahesh M.Ojha, AVP Research and Business development at Hensex Securities. "Long-term investors may hold with a close watch on occupancy and margins," he said.

Investors may consider booking partial profits on listing and holding the rest for long-term post listing, said Narendra Solanki, Head Fundamental Research- Investment Services, Anand Rathi Shares and Stock Brokers. "IndiQube Spaces provides managed workplace solutions including plug‑and‑play coworking spaces, interiors, tech, and facility management. They operate a "hub‑and‑spoke" model for workspace delivery across clients ranging from startups to global corporate capability centers. As of March 31, 2025, the company oversees 115 centres across 15 Indian cities, managing 8.40 million sq ft with a total seating capacity of 186,719. The company plans to expand its commercial real estate portfolio further, both in scale and geographical reach across the country.  We expect the company to list at around its issue price or marginally higher," he said.

"Their workplace solutions ecosystem is designed to cater to the diverse requirements of their wide-ranging clientele, encompassing various demographics, seating capacities, and industry sectors. At the upper price band company is valued at P/S of 4.7x with EV/EBITDA of 14.6x and market cap of ₹ 49,771 million post issue of equity shares," he added.

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."

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.

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