IndoSpace, India's largest developer of logistics and warehouse infrastructure, is preparing to hit the primary market with an initial public offering (IPO) that could raise over $750 million, according to people familiar with the matter. This move marks a significant shift from its earlier idea of floating an Infrastructure Investment Trust (InvIT).

Sources close to the company say the IPO is being planned as part of IndoSpace’s monetisation strategy for its vast logistics portfolio, although the public issue may not be immediate and could depend on favourable market conditions in the medium term.

IPO preferred over InvIT structure

While IndoSpace initially considered creating an InvIT to monetise assets and attract infrastructure-focused investors, the company is now leaning towards a traditional IPO structure. The rationale behind the switch includes greater valuation flexibility, liquidity for shareholders, and a broader investor base accessible through the IPO route.

A source close to the development commented, “It is in the pipeline,” suggesting that internal planning is underway, but the final timeline is yet to be finalised. Factors such as market sentiment, listing environment, and macro conditions will play a crucial role in determining when IndoSpace eventually files its draft red herring prospectus (DRHP).

Backed by global investors

Founded in 2007, IndoSpace has grown into India’s leading logistics real estate platform, backed by international giants like:

• Everstone Capital

• Realterm (a US-based logistics real estate investor)

• GLP (Global Logistic Properties, a Singapore-based logistics fund)

• Canada Pension Plan Investment Board (CPPIB)

These global backers have helped IndoSpace build a pan-India portfolio of over 60 million square feet, with more than 50 logistics parks located across 11 Indian cities, and catering to 140+ multinational clients across industries.

The firm’s expansive footprint positions it strongly to benefit from India’s growing demand for high-quality industrial and warehousing infrastructure, driven by e-commerce, retail, manufacturing, and 3PL logistics.

Asset sales precede IPO

In 2023, IndoSpace made headlines by selling 2.5 million square feet of fully-leased warehouse assets in Pune and Sri City to Alta Capital for approximately $100 million. These parks serve the western and southern regions of India and house blue-chip multinational tenants.

Sources suggest IndoSpace might offload a few more warehousing assets in the coming months as part of a pre-IPO portfolio optimisation strategy, though this process is still underway. These divestments are expected to improve capital efficiency, streamline operations, and boost the company's appeal to IPO investors.

Earlier attempts by IndoSpace sponsors to sell stakes to strategic investors reportedly didn’t go through due to valuation disagreements, making an IPO a more attractive route to raise capital while maintaining a premium on asset valuation.

Strategic investment in Tamil Nadu

In October 2023, IndoSpace had announced plans to invest up to ₹4500 crore to establish new logistics and industrial parks in Tamil Nadu, aligning with state-led initiatives to grow automotive, electronics, and industrial hubs. This expansion is part of IndoSpace’s broader plan to diversify geographically and capture growing demand from manufacturing-centric clusters.

This state-level push also strengthens IndoSpace’s visibility as a key logistics infrastructure enabler in India’s Make in India and China+1 manufacturing strategy.

Industry outlook supports public listing

India’s warehousing and logistics sector has been growing at double-digit rates, supported by:

• Booming e-commerce and last-mile delivery demand

• Supply chain formalisation post-GST

• PLI (Production Linked Incentive) schemes and government focus on manufacturing

• Increased demand for Grade A logistics spaces

In this context, IndoSpace’s scale, quality of assets, and tenant portfolio position it well for public listing, offering investors exposure to one of the fastest-growing real estate segments.

Analysts expect the IPO to attract institutional interest, especially from long-term infrastructure and REIT-focused funds, looking to invest in India’s logistics story with stable rental yields and high asset utilisation.

IPO could redefine logistics investment in India

If successful, IndoSpace’s IPO could be a milestone moment for India’s logistics sector, showcasing how institutional-grade assets and global partnerships can unlock value in non-traditional real estate segments.

It could also pave the way for other logistics developers to explore the public markets or structured investment vehicles, thereby deepening India’s real estate capital markets.

As the company gears up, all eyes will be on its filing schedule, investor roadshows, asset optimisation moves, and valuation metrics in a market where warehousing is becoming the new real estate frontier.

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