WeWork India eyes Rs 3,000-cr IPO

Co-working major WeWork India is set to make its stock market debut with an initial public offering (IPO) of nearly Rs 3,000 crore, beginning October 3. The issue will remain open for public subscription until October 7, with anchor investor bidding scheduled for October 1, according to the company’s red herring prospectus (RHP).

The IPO is structured entirely as an Offer for Sale (OFS), with existing shareholders offloading up to 4.63 crore equity shares. Embassy Buildcon LLP, part of the promoter group, and Ariel Way Tenant Ltd, linked to WeWork Global, will sell their stakes. As a result, WeWork India will not directly receive funds from the listing.

Currently, the Bengaluru-based Embassy Group holds a 76.21 per cent stake in the company, while WeWork Global owns 23.45 per cent. The company operates under an exclusive license of the WeWork brand in India and was established in 2017.

According to the draft papers, the listing aims to improve visibility, create liquidity for existing shareholders, and establish a public market for its shares in India. WeWork Global had invested USD 100 million in 2021, and in January 2024, WeWork India raised Rs 500 crore through a rights issue to reduce debt and support expansion.

WeWork India manages 77 lakh sq ft of co-working space across major Tier-1 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. Of this, 70 lakh sq ft is operational, with a total desk capacity of 1.03 lakh. The company employs more than 500 people.

With the IPO scheduled in early October, WeWork India is expected to debut on the stock exchanges on October 10, offering investors a chance to participate in one of the country’s leading co-working businesses.