NEW DELHI: WeWork India, a provider of flexible workspaces, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The offering will be conducted entirely through an offer for sale (OFS) route, with no new equity issuance as stated in the company’s draft red herring prospectus (DRHP).
The IPO includes an OFS of up to 4.37 crore equity shares, each with a face value of ₹10. The selling shareholders, Embassy Buildcon LLP and 1 Ariel Way Tenant, will offload up to 3.34 crore shares and 1.03 crore shares, respectively. Notably, the company will not receive any proceeds from this offering as all funds will go to the selling shareholders.
Embassy Buildcon LLP holds a controlling stake in WeWork India, owning approximately 76.21% of the equity share capital, equating to over 10.21 crore shares. Meanwhile, 1 Ariel Way Tenant owns 23.45%, accounting for 3.14 crore shares. Together, these stakeholders control 99.66% of the company’s equity.
According to the DRHP, the company’s capital structure consists of an authorized share capital of 857.5 million equity shares, each valued at ₹10, as well as 142.49 million compulsorily convertible preference shares (CCPS) at the same face value. As of now, the issued, subscribed, and paid-up share capital stands at 13.4 crore equity shares amounting to ₹134.02 crore. The IPO involves selling up to 4.37 crore equity shares.
For FY24, WeWork India reported consolidated income of ₹1,737.16 crore, up from ₹1,422.77 crore in the previous fiscal year. The net consolidated loss was ₹135.77 crore, a slight improvement from the ₹146.81 crore loss recorded in FY23. The company’s total borrowings were ₹616.90 crore in FY24, compared to ₹481.11 crore in FY23.
As of FY24, the company operated 53 centers nationwide, with a total desk capacity of 89,154 and a leasable area of 6.33 million sq. ft., housing 73,139 occupied desks, indicating a strong demand for flexible workspace solutions.
As of September 30, 2024, WeWork India’s net worth was negative ₹259.88 crore, a notable improvement from negative ₹437.45 crore in FY24 and negative ₹292.11 crore in FY23. The company conducted a rights issue worth ₹501.28 crore in January 2025 and utilized ₹561.20 crore from that capital to repay redeemable non-convertible debentures.
JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM are the book-running lead managers for the IPO.
