A week after the regulator removed its draft IPO papers from abeyance, WeWork India Management received approval for its public listing. The regulator granted the IPO clearance more than three months after initially pausing the process.
In late March, the Securities and Exchange Board of India had temporarily placed the draft documents in abeyance without providing a specific reason. At the time, the regulator noted that the “issuance of observations (has been) kept in abeyance.”
The Embassy-backed workspace provider filed its draft red herring prospectus for a stock market debut via a pure offer-for-sale (OFS) in February. Through the IPO, Embassy Buildcon LLP and WeWork Global affiliate 1 Ariel Way Tenant Ltd. plan to offload up to 4.4 crore shares.
At present, promoter Embassy Buildcon holds a 73.8% stake in WeWork India, while 1 Ariel holds 22.7% on a fully diluted basis. The average acquisition cost per share stands at ₹161.83 for Embassy and ₹65.88 for 1 Ariel.
As this is a pure OFS, the company will not receive any proceeds from the IPO. JM Financial Ltd., ICICI Securities Ltd., Jefferies India Pvt., Kotak Mahindra Capital Co., and 360 ONE WAM Ltd. are serving as the lead managers for the issue.
WeWork India, launched in 2017 by its then Adam Neumann-led parent company, began operations through a strategic partnership with Karan Virwani’s Embassy Group. As of September 30, 2024, the company operated 94,440 desks across 59 centres in eight cities. Its client portfolio includes major names such as Amazon Web Services, JP Morgan Services, Deutsche Telekom, and Grant Thornton Bharat.
In June 2024, India’s competition regulator approved WeWork Inc.’s exit from the Indian business through a sale to Real Trustee Advisory Company. This two-step transaction paved the way for a shift in the ownership structure of the Indian coworking firm.
Once listed, WeWork India will compete with other players in the segment, including Awfis Space Solutions Ltd. and IPO-bound Smartworks Coworking Spaces.
