Indiqube Spaces IPO: A Key Milestone for the Office Workspace Provider
Indiqube Spaces Ltd., a leading office workspace solution provider, is set to launch its initial public offering (IPO) on July 23, 2023, with a price band of Rs 225 to Rs 237 per share. The IPO is a significant milestone for the company, which plans to raise Rs 650 crore through a fresh issue of shares and Rs 50 crore through an offer-for-sale portion.
The Rs 700-crore IPO comprises of a fresh issue of shares worth Rs 650 crore and an offer-for-sale portion of Rs 50 crore. The allotment for the IPO is expected to be finalised on July 28, and the shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on July 30.
About Indiqube Spaces Ltd.
Indiqube Spaces Ltd. is a leading and organized flexible managed office workspace provider in India. As of March 31, 2023, the company operated 115 centers spanning across eight Tier I cities and seven non-Tier I cities, with a total area under management of 8.4 million square feet and rentable area of 6.3 million square feet, with occupancy ranging from 80.0-85.0% over the last three years.
The company offers quality and affordable office workspace in key micro-markets along with comprehensive set of value-added services, including customized fit-outs and interiors, access to board rooms, meeting rooms, and training rooms, cafeterias and F&B services to clients’ employees, access to entertainment and collaborative areas, and end-to-end facility management through a centralized platform at a comprehensive single pricing, so that organizations can avoid the hassle of owning and managing their own office space.
Objects of the Offer
The objects of the offer are as follows:
- Funding capital expenditure towards establishment of new centers.
- Repayment/pre-payment of certain borrowings.
- General corporate purposes.
Valuation and Peer Comparison
IndiQube Spaces’ initial issue is priced at 8.4x trailing twelve months 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.
On comparing the growth with peers, we believe the IndiQube’s initial offering is fully priced in, and we assign a ‘Neutral’ rating to the issue.
Conclusion
In conclusion, Indiqube Spaces Ltd.’s IPO is a significant milestone for the company, which plans to raise Rs 650 crore through a fresh issue of shares and Rs 50 crore through an offer-for-sale portion. The company’s financial performance has been impressive, with revenue and Ebitda scaling at 35.2% and 61.4% CAGR respectively, over FY23-25. The IPO is priced at 8.4x trailing twelve months 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.
