WeWork India's files DRHP for IPO with SEBI

WeWork India, a flexible workspace provider supported by the Embassy Group, has submitted its draft papers to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO will be entirely an offer-for-sale (OFS) of 43.7 million equity shares by existing shareholders, with no new issue of shares. So, all the money mopped up would go to the promoter; the company won’t get any of it for growth purposes.

Share Distribution in the IPO

Embassy Buildcon LLP, the promoter of WeWork India, will sell 33.4 million equity shares in the IPO. Additionally, investor 1 Ariel Way Tenant will offer 10.3 million shares for sale. Currently, Embassy Buildcon LLP holds a controlling 76.21% stake in the company, while 1 Ariel Way Tenant, based in the UK, owns a 23.45% stake. Public shareholders hold the remaining shares. The proceeds from the OFS will go to the selling shareholders and will not result in any value creation for WeWork India or its investors.

WeWork India's Operational and Financial Overview

WeWork India has become the largest flexible workspace operator in the country by total revenue for three consecutive fiscal years since its inception in 2017. The company operates 59 centres across eight major Indian cities, providing 94,440 desks within 6.48 million square feet of leasable area. These cities include Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. Although WeWork India reported a loss of Rs 135.8 crore in fiscal 2024, its revenue increased by 26.7% to Rs 1,665.1 crore. In the first half of the fiscal year ending September 2024, the company reported a profit of Rs 174.6 crore on revenue of Rs 918.2 crore, signifying a substantial turnaround.

Market and Competition

The flexible workspace sector in India is seeing increasing competition and opportunities. WeWork India's primary competitor in the Indian market is Awfis Space Solutions, another flexible workspace provider that recently went public. The IPO filing highlights the growing competition in the Indian flexible workspace market.

IPO Details and Management

The IPO is managed by book-running lead managers JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM. The company is not planning pre-IPO placement before listing on the stock exchanges.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.