Indiqube Spaces IPO Lists at Discount Amid Weak Market Sentiment

The managed workplace solutions provider, Indiqube Spaces Limited, made a disappointing debut on the NSE and BSE on July 30, 2025. After closing its IPO bidding between July 23 - July 25, 2025, the company commenced trading with an 8.86% discount on NSE and 7.7% discount on BSE, reflecting significant market concerns despite moderate subscription response in the flexible workspace sector.

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Indiqube Spaces Listing Details

Indiqube Spaces Limited launched its IPO at ₹237 per share with minimum investment of 63 shares costing ₹14,931. The IPO received moderate response with subscription of 13.00 times - QIB segment leading at 15.12 times, retail investors at 13.28 times, whilst NII participation remained subdued at 8.68 times, indicating institutional interest despite underlying business concerns.

First-Day Trading Performance Outlook

Listing Price: The Indiqube Spaces share price opened at ₹216 on NSE and ₹218.70 on BSE, representing discounts of 8.86% and 7.7% respectively from the issue price of ₹237, delivering losses for investors and highlighting market scepticism about the business model despite subscription interest.

Growth Drivers and Challenges

Growth Drivers:

• Market Leadership Position: Leading player in India's growing flexible workspace market with strong presence across 15 cities including tier-I and non-tier-I locations
• Comprehensive Service Portfolio: Diversified offerings including IndiQube Grow, Bespoke, One, and MiQube technology stack providing end-to-end workplace solutions
• Strong Revenue Growth: Revenue growth of 27% in FY25 with impressive EBITDA margin of 58.20% demonstrating operational leverage potential
• Enterprise-First Strategy: Focus on large clients with long-term contracts providing revenue stability and scalability opportunities

Challenges:

• Persistent Losses: Net loss of ₹139.62 crore in FY25 with negative net worth of ₹3.11 crore raising serious concerns about financial sustainability
• Market Reception Issues: Listing at discount despite subscription response indicates fundamental concerns about business viability and valuation
• High Debt Burden: Negative debt-to-equity ratio due to negative equity with borrowings of ₹343.96 crore creating financial stress
• Industry Cyclicality: Flexible workspace sector vulnerable to economic downturns and changing work patterns affecting occupancy rates

Utilisation of IPO Proceeds

• Capacity Expansion: ₹462.65 crore for capital expenditure towards establishment of new centres supporting geographic and market expansion 
• Debt Repayment: ₹93.04 crore for repayment of borrowings improving capital structure and reducing financial leverage 
• General Corporate Purposes: Remaining funds for strategic initiatives and operational requirements

Financial Performance of Indiqube Spaces

Revenue: ₹1,102.93 crore for FY25, showing strong 27% growth from ₹867.66 crore in FY24, reflecting robust demand for flexible workspace solutions and successful expansion.
 

Net Loss: ₹139.62 crore in FY25, representing improvement from ₹341.51 crore loss in FY24, though continued losses raise sustainability concerns despite operational improvements.

Financial Metrics: Negative ROE of -2.19%, strong ROCE of 34.21%, negative debt-to-equity of -110.58, negative PAT margin of -12.66%, robust EBITDA margin of 58.20%, and market capitalisation of ₹4,977.12 crore.

Indiqube Spaces represents a challenging investment opportunity in the flexible workspace sector with disappointing listing performance delivering 8.86% discount despite moderate subscription response of 13 times. While concerns over persistent losses and negative net worth overshadow positives, the company's market leadership position, strong revenue growth, and impressive EBITDA margins suggest potential for recovery, though the poor debut performance indicates investors should exercise significant caution given the fundamental financial challenges and market scepticism.