WeWork India's ₹3,000cr IPO now open: Should you subscribe?
What's the story
WeWork India, a leading provider of flexible workspaces, has launched its initial public offering (IPO) today. The issue is completely an offer for sale by promoters and investors. It is priced in the range of ₹615-₹648 per share and will close on October 7. The company will be listed on both NSE and BSE with a tentative listing date set for October 10.
Offer specifics
IPO details
The IPO comprises 4.62 crore shares worth ₹3,000 crore. As a complete offer for sale, the company won't receive any funds from this issue. The selling shareholders are Embassy Group and WeWork Global, which is a brand licensor and investor in the Indian business. Retail investors can apply for a minimum of one lot of 23 shares.
Business growth
About WeWork India
Founded in 2017, WeWork India is the largest premium flexible workspace provider in the country. It has 68 centers and 7.35 million sq. ft. of space across eight cities. The company counts global giants like JP Morgan, Amazon, and Uber among its clients. Financially, WeWork India has shown a turnaround with revenue rising from ₹1,314 crore in FY23 to ₹1,949 crore in FY25 and earnings after tax swinging from a loss of ₹147 crore to a profit of ₹128 crore.
Valuation perspective
Analyst views on the issue
At the upper price band, WeWork India's stock is valued at 65 times FY25 earnings. This is higher than listed peers Awfis Space and Smartworks. Analysts are divided on valuations with Canara Bank Securities recommending to subscribe despite the IPO appearing on the higher end compared to peers.
Market position
Flexible workspace market growth potential
Industry reports predict India's flexible workspace market to grow at a CAGR of 21-22% till FY27. With a quarter share of the market and strong enterprise focus, WeWork India is well positioned to benefit from this growth. However, investors should consider valuation risks and sector cyclicality before making investment decisions.