Indiqube Spaces IPO: Anand Rathi, SMIFS & Arihant give thumbs up, SBI Sec says 'avoid'

The initial public offering (IPO) of Indiqube Space is set to open for bidding at the bourses on Wednesday, July 23, 2025. The issue, which is being sold in the range of Rs 225-227 apiece to raise a total of Rs 700 crore via primary market route, has garnered mixed reviews from the brokerage firms so far.

The issue is fresh share sale of Rs 650 crore and offer-for-sale (OFS) of up to 21.09 lakh equity shares worth Rs 50 crore. Investors can apply for a minimum of 63 equity shares and its multiples thereafter. Stock analysts from Anand Rathi, Arihant Capital Markets and SMIFS have a positive view on the issue, while SBI Securities believes that investors may give this issue a skip.

SBI Securities believes that loss making nature of the business and better investment opportunities in the same space does not augur well for Indiqube. However, Arihant Capital believes that the stock may deliver a healthy listing pop, while Anand Rathi and SMIFS have a positive view on the stock for the long-term.

Indiqube has a healthy occupancy rate across most of the centers. 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. It is valued at FY25 EV/Adjust Ebitda of 40.7 times, which is at a premium to listed peers, said SBI Securities.

"We recommend investors to 'Avoid" the issue and track the company's performance post listing especially focusing on its capital efficiency. We believe companies like Awfis Space Solutions offer better investment opportunities within the coworking space which is currently profitable and trades at FY25 EV/Adjusted Ebitda of 28.1 times," it added.

"With a diversified tenant portfolio and high client retention, Indiqube is well-positioned to benefit from the shift toward hybrid and agile workspace solutions. The IPO is valued at an EV/Ebitda of 8.6 times (FY25 basis). We recommend a 'subscribe for listing gains' given its strong positioning and sectoral tailwinds" said Arihant Capital.

"Indiqube is a leading provider of tech-enabled, fully managed office spaces across key Indian metros, operating through a scalable and asset-light model. It has demonstrated strong growth in its managed area and tenant base, driven by increasing demand for flexible workspaces in high-growth, it added.

Incorporated in 2015, Bengaluru-based Indiqube Spaces provides managed, sustainable, and tech-driven workplace solutions, aiming to transform the traditional office experience for modern businesses. It offers diverse workplace solutions, including corporate hubs and branch offices, enhancing employee experience with interiors, amenities, and services.

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.  The issue is valued at P/S of 4.7 times with EV/Ebitda of 14.6 times and market cap of Rs 4,977.1  crore post issue of equity shares, said Anand Rathi.

"They aim to expand IndiQube Bespoke across India, offering tailored office interior solutions beyond their core ecosystem, allowing businesses to create workspaces aligned with their brand, culture, and operational needs," it added. We believe that the IPO is fully priced and recommend a 'subscribe for long term' rating to the IPO," it said.

Indiqube shift to bundled offerings and upcoming ESG-aligned 'sustainability-as-a-service' initiatives are expected to further boost yield per sq. ft., ensuring IndiQube’s revenue growth outpaces industry averages through a combination of scale, premium locations, and service-led differentiation, said SMIFS.

"We recommend subscribing to the issue as a long-term investment, supported by robust industry growth trends and reasonable valuations, while acknowledging potential short to medium-term cash flow risks," it added.

Anchor book of the company shall be announced later today. The issue is managed by ICICI Securities and JM Financial with MUFG Intime India serving as the registrar for the IPO. Shares of the company shall be listed on both BSE and NSE with Wednesday, July 30 as the tentative date of listing.