NEW DELHI: WeWork India, a major player in co-working spaces, is set to launch its Initial Public Offering (IPO) this week. The company has reported a loss of Rs 14.14 crore for the first quarter of this fiscal year, despite an increase in revenue, driven by robust office demand.
The loss in the same quarter last year was Rs 29.17 crore.
WeWork India’s revenue from operations rose by 19% to Rs 535.31 crore in the April-June quarter, compared to Rs 448.65 crore during the same period last year, as indicated in the latest Red Herring Prospectus (RHP) submitted to SEBI.
For the entire fiscal year 2024-25, the company’s profit amounted to Rs 128.18 crore with a turnover of Rs 1,949.21 crore.
Established in 2017, WeWork India operates under an exclusive license of the WeWork brand. Bengaluru-based Embassy Group currently holds approximately 76.21% of WeWork India, while WeWork Global owns 23.45%.
On Monday, WeWork India announced a price band of Rs 615-648 per share for its upcoming Rs 3,000 crore Initial Public Offering (IPO). This valuation places the company at approximately Rs 8,685 crore.
The subscription window for the IPO opens on October 3 and closes on October 7.
This IPO is entirely an Offer for Sale (OFS) of up to 4.63 crore equity shares, allowing promoter group entity Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) to divest their stakes. The total IPO value is estimated at Rs 3,000 crore at the upper end.
Since this is an OFS, WeWork India will not receive any proceeds from the offering; funds will solely benefit the selling shareholders.
According to its draft documents, WeWork India’s objective is to achieve the advantages of listing its equity shares on the stock exchanges. The company anticipates that the listing will enhance visibility, offer liquidity to existing shareholders, and establish a public market for its stock in India.
WeWork Global invested USD 100 million in 2021, and in January 2024, the firm raised Rs 500 crore through a rights issue aimed at reducing debt and funding expansion.
Currently, WeWork India operates in Tier-1 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai, managing 77 lakh sq. ft of space, with 70 lakh sq. ft operational and a desk capacity of 1.03 lakh.
