NEW DELHI: WeWork India Management Ltd’s initial public offering (IPO) saw a 4% subscription on its opening day of share sales on Friday.
The IPO attracted bids for 1,110,440 shares, compared to the 25,489,748 shares available, according to NSE data.
The retail individual investors’ (RII) segment was subscribed at 14%, while both the qualified institutional buyers and non-institutional investors’ segments saw subscriptions of 2% each.
WeWork India has secured over Rs 1,348 crore from anchor investors.
The company’s Rs 3,000-crore issue will close on October 7, with a price band set between Rs 615 and Rs 648 per share, which gives the company a valuation of about Rs 8,685 crore at the upper end.
The IPO, which consists entirely of an offer for sale of up to 4.63 crore equity shares, will involve the promoter group entity Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) selling their stakes.
Currently, the Embassy Group owns approximately 76.21% of WeWork India, while WeWork Global holds 23.45%.
Since this is an offer for sale (OFS), WeWork India will not receive any proceeds from this issue; all funds will be allocated to the selling shareholders.
According to its draft papers, WeWork India aims to achieve the benefits of having its equity shares listed on stock exchanges. It anticipates that listing will improve visibility, provide liquidity to current shareholders, and create a public market for its shares in India.
Founded in 2017, WeWork India operates under an exclusive license for the WeWork brand within the country, and is backed by the Bengaluru-based Embassy Group.
Currently, WeWork India manages 7.7 million sq ft across Tier-1 cities such as Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai, with 7 million sq ft operational and a desk capacity of 103,000. The firm employs over 500 individuals.
