WeWork India gets SEBI nod for ₹4,000cr IPO
What's the story
WeWork India, the country's largest premium flexible workspace operator by revenue, has received the green light from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The company's IPO will be an offer for sale of up to 43.75 million equity shares, according to its draft red herring prospectus. The move comes as part of a plan to sell shares valued at ₹4,000 crore through this listing, with the proceeds going to the selling shareholders.
Stake sale
Who is selling shares in the IPO?
The IPO will see Embassy Buildcon LLP, the promoter, selling up to 33.46 million shares and 1 Ariel Way Tenant Limited, an investor, offloading up to 10.29 million shares. The entire proceeds from this offer will go to the selling shareholders as it is solely an offer for sale. JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company and 360 ONE WAM are the book-running lead managers for this public issue.
Business overview
Backed by real estate giant Embassy Group
Backed by Bengaluru-based real estate giant Embassy Group, WeWork India has held the exclusive license for the WeWork brand in India since 2017. As of September 30, 2024, it operated 94,440 desks across 59 centers over a total area of 6.48 million square feet. The company's portfolio is largely dominated by Grade A properties (about 93%), with locations in key cities such as Bengaluru, Mumbai, Pune, Hyderabad, Gurgaon, Noida, Delhi, and Chennai.
Market challenges
WeWork's plan to exit India fell through last year
Notably, WeWork's plan to divest its 27% stake in the Indian unit and exit the country fell through in September 2024 due to a valuation mismatch. The deal was approved by regulators but didn't go through. The remaining 73% is owned by Embassy Group, which is now selling a part of its stake through this IPO.