Global markets and asset management firm CLSA divested approximately 8.4 lakh shares in WeWork India Management through a bulk deal on Monday, with shares priced at Rs 618.55 each, totaling Rs 52 crore.
The transaction was conducted via CLSA Global Markets Pte. LTD – ODI, reflecting a 1.6% discount from the previous Friday’s closing price of Rs 628.65 on the NSE.
WeWork Management’s shares took a hit for the second consecutive day, closing at Rs 611.20, down Rs 17.45 or 2.8% from Friday’s closing figure. After debuting on Friday, the stock is now trading at 6% below its issue price of Rs 648.
The stock began listing at a mere 0.3% premium on the NSE at Rs 650.
WeWork India’s ₹3,000-crore Initial Public Offering (IPO) wrapped up on October 7, achieving full subscription at 1.15 times, although retail and non-institutional investor responses were relatively lackluster. Retail Individual Investors (RIIs) subscribed to 61% of the available 46.23 lakh shares, while Non-Institutional Investors (NIIs) only secured 23% of their 69.35 lakh allocation. Qualified Institutional Buyers (QIBs) led the charge, oversubscribing their portion 1.79 times.
The IPO was entirely structured as an Offer-for-Sale (OFS), meaning the company did not generate new funds. Proceeds will benefit existing shareholders, including Embassy Group and WeWork Global, which continues to serve as the brand licensor and investor in India.
Established in 2017, WeWork India operates 68 premium flexible workspaces across eight cities, covering 7.35 million sq. ft., and serves high-profile clients like JP Morgan, Amazon, and Uber. Enterprise tenants form nearly 60% of the portfolio, significantly exceeding the industry average.
The company has seen a financial turnaround in recent years, with revenue increasing from ₹1,314 crore in FY23 to ₹1,949 crore in FY25. Meanwhile, losses shrank from ₹147 crore to a net profit of ₹128 crore over the same period. Adjusted EBITDA margins reached 21.6% in FY25, indicating improved operational efficiency.
However, the IPO’s valuation is steep, priced at 65 times FY25 earnings at the upper end. In comparison, listed peer Awfis Space has a P/E of 58x, while competitors such as Smartworks and Indiqube remain unprofitable.
(Disclaimer: The recommendations, suggestions, views, and opinions provided by the experts are their own and do not reflect the views of The Economic Times.)
