NEW DELHI: WeWork India has set a price band of Rs 615 to Rs 648 per share for its Rs 3,000 crore initial public offering (IPO), scheduled to launch on October 3 and conclude on October 7. Bidding for anchor investors will start on October 1.
At the upper end of the pricing, the company’s valuation is approximately Rs 8,685 crore.
This IPO consists entirely of an Offer-for-Sale (OFS) of up to 4.63 crore equity shares, with the promoter group, Embassy Buildcon LLP, and investor Ariel Way Tenant Ltd (a part of WeWork Global) relinquishing their shares.
Embassy Group currently holds about 76.21% of WeWork India, while WeWork Global owns 23.45% of the company.
As this is an OFS, WeWork India will not receive any funds from the issue; the proceeds will be allocated entirely to the selling shareholders.
In its draft filings, WeWork India noted the purpose of the offering is to gain the benefits of listing its equity shares on the stock exchanges, which would improve visibility, provide liquidity for current shareholders, and develop a public market for its stock in India.
Founded in 2017, WeWork India operates under an exclusive license from the WeWork brand, backed by the Bengaluru-based Embassy Group.
The company aims to utilize the IPO primarily for listing benefits, enhancing visibility, providing liquidity to existing shareholders, and establishing a public market for its stock.
WeWork Global invested USD 100 million in 2021 and raised Rs 500 crore through a rights issue in January 2024 to reduce debt and support expansion efforts.
Currently, WeWork India operates in major Tier-1 cities including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai, managing 77 lakh sq. ft. of space, of which 70 lakh sq. ft. are operational, accommodating a desk capacity of 1.03 lakh, and employing over 500 people.
According to the company, 75% of the offer size has been allocated to qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.
Investors can bid for a minimum of 23 shares and in multiples thereafter.
With the IPO set for early October, WeWork India is anticipated to list on the stock exchanges on October 10.
