India’s largest warehouse developer IndoSpace is gearing up for a major shift and planning to go public by an IPO. IndoSpace IPO is expected to be around USD 750 million (INR 6,500 crore) instead of an Infrastructure Investment Trust (InvIT), according to sources.
The company had earlier been exploring the InvIT route, a popular mechanism among infrastructure asset owners to unlock capital while retaining operational control. But after much deliberation and changing market conditions, the company is now more inclined towards going public through IndoSpace IPO.
InvIT – IndoSpace IPO in the Works
While the IPO is in the pipeline, sources said the listing will happen in the medium term subject to market conditions. The IPO will enable IndoSpace to monetise its large portfolio of logistics parks and raise funds for growth, offer investors a stake in India’s growing warehousing sector.
This is a broader trend among infrastructure players moving towards capital market instruments to support growth, enhance visibility and provide liquidity to investors.
A Market Leader with a Strong Portfolio
Founded in 2007, IndoSpace has become a dominant player in India’s warehousing sector. It has over 50 logistics parks across 11 major Indian cities with over 60 million square feet of space. The parks serve over 140 clients including many blue chip multinational companies.
The company has invested over USD 3 billion (INR 25,732 crore) since inception to build and manage its logistics asset portfolio. It is backed by a consortium of global investors including Everstone Capital, Realterm, GLP and Canada Pension Plan Investment Board (CPPIB) which is a testimony to the faith and credibility it has in the global investment community.
Asset Sales and Expansion
Before the IPO, IndoSpace is streamlining its portfolio. In 2024, the company sold 2.5 million square feet of warehousing space in Pune and Sri City to Alta Capital for USD 100 million (INR 858 crore). These assets were fully leased and served clients in western and southern India, shows the quality of the assets and investor interest. The company may offload more assets in the coming months as part of its IPO prep but that’s still under consideration.
In October 2024, IndoSpace announced an investment commitment of up to INR 4,500 crore for development of new industrial, logistics and warehousing parks in Tamil Nadu to support high growth sectors like automobiles and electronics. This shows the company’s intent for regional expansion and sectoral diversification.
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Valuation Talks and Past Hurdles
IndoSpace’s sponsors had earlier talked to strategic investors for a stake sale but those discussions didn’t move forward due to differences over pricing and valuation. Now with the IPO, the company has more control over the timing, structure and valuation of its fund raising process.
Conclusion
IndoSpace’s decision to go for an IPO instead of an InvIT is a sign of confidence in its growth story and a strategic move to tap the public markets at a time when Indian logistics is poised for a big growth. With an impressive asset base, marquee investors and strong client relationships the company is well placed to deliver value to its shareholders and be a key player in shaping Indian logistics infrastructure.
As the IPO unfolds, we will see how IndoSpace makes the most of this opportunity to scale up in logistics and industrial real estate space.