Co-working space provider BHIVE eyes IPO at issue size of Rs 500 cr by 2025

Co-working space provider BHIVE is eyeing an initial public offering (IPO) by 2025 at an issue size of about Rs 500 crore. The Bengaluru-based company also aims to achieve a revenue of about Rs 600 crore in the next three years.

“We are looking to file a draft red herring prospectus (DRHP) next year for the IPO and are in talks with bankers. Through the IPO, there is no intention to raise primary capital. It is all being done to provide an exit to the investors,” said Sheshagiri Rao Paplikar, founder and chief executive officer, BHIVE Group.

The company also aims to increase its seat capacity by 40 per cent annually over the next three years and plans to launch small and medium real estate investment trusts (SMReits). “We are working on it and will build a huge portfolio,” Paplikar added.

In addition, BHIVE Properties, the company’s commercial real estate arm, is launching hard commercial real estate at Brigade Metropolis in Bengaluru, spanning 22,940 square feet, with plans for expansion to other cities underway.

“BHIVE Properties is bullish on this business and believes that in the next two years, it will touch Rs 500 crore in revenue. Additionally, BHIVE aims to foster strategic partnerships in the Middle East, facilitating mutual investments between India and the region,” Paplikar elaborated.

Backed by Blume Ventures, BHIVE expanded into the Mumbai-Pune region, securing office space at Adani’s tower in BKC with an investment of Rs 25 crore. BHIVE boasts 26 offices spanning across 1.8 million square feet nationwide.

BHIVE said it is a profitable company and will touch Rs 200 crore in revenue, inclusive of profit after tax (PAT), by the end of FY24. “Our capital utilisation has been very strong,” said Paplikar.

In December 2023, BHIVE finalised the acquisition of Praemineo, a product-engineering firm, to bolster its expanding co-working and fintech ventures.

Currently, there are no additional acquisition strategies under consideration. “There is no concrete plan for any further acquisition. If we want to up our game in the food and beverage sector, maybe we will go for an acquisition. If we have a lot more capital, we might look at more capabilities that we do not possess. With our present capital strength, we are looking to expand our co-working business,” Paplikar remarked.

As part of its strategy moving forward, BHIVE seeks to invest in large-scale properties with a ticket size of Rs 10 to Rs 25 crore, added Paplikar.