Management

• Rishi Das (Chairman, Executive Director and Chief Executive Officer)
• Meghna Agarwal (Chief Operating Officer and Executive Director)
• Anshuman Das (Non-Executive Director)
• Sandeep Singhal (Non-Executive Nominee Director)
• Avalur Gopalaratnam Muralikrishnan (Independent Director)
• Rahul Matthan (Independent Director)
• Naveen Tewari (Independent Director)
• Sachi Krishana (Independent Director)
• Ramit Rajinder Bhardwaj (Chief Technology Officer)
• Pranav AK (Company Secretary and Compliance Officer)
• Pawan J Jain (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 700 cr which comprises fresh issue of 650 cr and offer for sale (OFS) of Rs.50 cr. The company intends to utilize a portion of the Net Proceeds towards Funding capital expenditure towards establishment of new centres (Rs.462.65 cr), Repayment/pre-payment, in full or in part, of certain borrowings availed by the company (Rs.93.04 cr) and rest for general corporate purposes.

Competitive Strengths

One of the leading players in the Large and Growing Flexible Workspace Market in India India’s flexible workspace stock stands at over 96 million sq. ft. as of March 31, 2025, with Bengaluru accounting for about 30% of this among Tier-I cities. The total addressable market is projected to reach 280–300 million sq. ft. and Rs 730–Rs 960 billion by 2027. Indiqube has a strong position in this high-growth segment, with 186,719 seats across 115 centers in 15 cities, including eight Tier-I and seven non-Tier I cities. It serves 769 clients across diverse industries and is among the leading operators in Bengaluru, leveraging its scale and value-added services to capture market opportunities.

Acquisition Strategy with a Focus on Value Creation and Demand-Driven Locations As of March 31, 2025, 85.39% of Indiqube’s portfolio was concentrated in India’s key micro-markets. Chennai and Bengaluru were standout performers, together accounting for 6.66 million sq. ft. or 79.28% of its portfolio. The company renovates Grade-B properties into technology-enabled centers, with renovated spaces comprising 25.22% of the total area. This strategy enhances underutilized real estate while improving quality and returns. Indiqube also uses a hub-and-spoke model, serving both large enterprises and smaller businesses through localized setups, allowing it to align its offerings with regional demand while maintaining operational scalability and capital efficiency.

Prudent Business Management Practices with Strong Operational Metrics Indiqube focuses on full-building leases, which comprise 64.71% of its portfolio, and uses hub-and-spoke clusters to drive cost efficiencies. Lease structures are aligned with client lock-in periods—landlord lock-ins average three years, while clients’ weighted average lock-in tenure is 33 months. This alignment ensures operational stability and revenue predictability. While industry payback periods range from 44–48 months, Indiqube’s is significantly shorter at 24.87 months, enhancing financial flexibility. Additionally, 30.27% of occupied area comes from multi-center clients, indicating client stickiness and higher recurring revenue potential across multiple locations.

Capital Efficient Model with Resilience and Comprehensive Risk Mitigation Indiqube’s asset-light model prioritizes leasing over ownership, using 10-year leases with three-year lock-ins and optional extensions. The firm retains termination rights, providing flexibility in volatile markets. Its average capex per sq. ft. is Rs.1,507.00, significantly lower than the Rs 2,400 benchmark for typical managed offices, indicating cost efficiency. This discipline enables it to offer premium spaces at competitive prices while preserving margins. Revenue is well-diversified—no single client contributed more than 3.47%, and the top five clients together accounted for just 11.80% as of March 31, 2025—ensuring resilience against sector-specific or client-driven disruptions.

Peer Comparison

Key Risks & Concerns

• For Fiscals 2025, 2024 and 2023, 88.84%, 91.82% and 93.18% of its revenue from operations, respectively, was derived from centres in Bengaluru, Pune and Chennai collectively. Any adverse developments affecting its centres in these locations, could have an effect on the business, results of operations and financial condition.
• The company does not own the properties where its centers are located. Any defect in the title and ownership of such properties may result in centers being shut down, result in relocation costs and termination of client agreements, which may adversely impact business.
• Company has experienced losses in the last three fiscals and it may continue to incur losses in the future which could have an adverse effect on its business, results of operations and cash flows.

Outlook and Valuation

The flexible workspace segment is experiencing strong structural tailwinds. According to CBRE’s 2024 APAC Office Occupier Survey, flexible spaces are expected to grow from comprising 10% to 39% of office portfolios in the next three years. The model’s appeal lies in agility, cost efficiency, and access to prime locations with shared amenities. Shifts in work culture—from remote to hybrid or full-time office — are driving demand for high-quality, tech-enabled workspaces. With the APAC economy projected to grow faster than global averages and India poised to grow at 6.2% in CY2025, occupier interest in adaptable and premium offices will likely accelerate further.

India, led by cities like Bengaluru, has outpaced global peers such as Tokyo and Singapore in office space absorption. This growth is underpinned by stable rental yields, rising domestic consumption, and MNC demand. Indiqube, with 186,719 seats across 115 centers and 8.40 million sq. ft. AUM, has grown its footprint substantially from FY23 to FY25. With a client base diversified across sectors and cities, increasing rental revenues, and an occupancy rate of 86.50% in mature centers, the platform benefits from expanding demand and longer client lock-ins. Growing value-added services also enhance margins and client stickiness in this high-potential segment. Revenue realization is expected to rise meaningfully by FY28, driven by strategic expansion into high-yield micro-markets like Bengaluru and Chennai (which account for ~82% of upcoming capex), alongside the scaling of Value-Added Services (VAS) that now contribute 12.7% of total revenue and grew at a 40.7% CAGR between FY23–FY25. ISL’s Revenue/EBITDA/Adj. EBITDA have grown at a CAGR of 35.2%/61.4%/54.9% respectively between FY23-25. However, on a net basis the company is generating loss due to heavy depreciation. The free cash flow after adjusting for the lease payments remains negative.

IndiQube’s initial issue is priced at 8.4x TTM EV/EBITDA, compared to the domestic peer average of 12.2x TTM EV/EBITDA. Further, the issue is priced at 47.4x FY25 EV/Adjusted Cash EBITDA, compared to the domestic peer average of 42.4x FY25 EV/Adjusted Cash EBITDA. We believe IPO is fully priced. We assign an "Avoid" rating to the IPO and monitor the company's performance after listing.