WeWork India gets SEBI nod for IPO

WeWork India has received approval from SEBI to go ahead with its IPO.

The public offering will be a pure offer-for-sale (OFS) of up to 4.4 crore equity shares. Of these, 3.3 crore shares will be sold by its parent, Embassy Buildon LLP, while the rest will come from its affiliate, 1 Ariel Way Tenant Limited.

The company has appointed JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital, and 360 ONE WAM as lead managers for the listing.

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WeWork India had filed its draft papers (DRHP) in February, but SEBI had paused the process briefly for unspecified reasons.

WeWork India began as the Indian arm of U.S.-based WeWork Inc., which filed for bankruptcy in November 2023.

Once valued at $47 billion, WeWork Inc. faced serious challenges after its 2021 stock market debut, due to heavy financial losses, poor governance, and leadership issues. The COVID-19 pandemic further impacted its business by hitting the real estate sector hard.

Although WeWork Inc. exited bankruptcy through a court-approved restructuring, WeWork India continued to grow independently, as the U.S. parent held only a 27% stake. The rest was owned by Embassy Group, a leading Indian real estate developer.

WeWork Inc. was expected to fully exit WeWork India after getting CCI approval in early 2024, but the deal didn’t go through due to valuation differences. Currently, WeWork Inc. retains its stake through its affiliate, 1 Ariel Way Tenant Limited.

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WeWork India’s IPO comes just as rival Smartworks wrapped up a strong public offering, closing with an oversubscription of 13.45X. Investors bid for 13.9 crore shares against the 1.04 crore on offer, with its listing set for July 17.