WeWork India Files Papers for IPO with SEBI

WeWork India, backed by the Embassy Group, has submitted draft papers to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company, which operates flexible workspaces across major Indian cities, is looking to raise funds through a public listing.

IPO Structure

The IPO will be entirely an offer-for-sale (OFS) of 4.37 crore equity shares. There will be no fresh issue component. Embassy Buildcon LLP, the promoter, will sell 3.34 crore shares, while investor 1 Ariel Way Tenant will offload 1.03 crore shares.

Since this is a pure OFS, the company will not receive any proceeds from the IPO. The funds will go directly to the selling shareholders after deducting applicable expenses and taxes.

Ownership and Business Overview

WeWork India is primarily owned by Embassy Buildcon LLP, which holds a 76.21% stake. The remaining 23.45% is owned by other public shareholders, including 1 Ariel Way Tenant. The Embassy Group, the real estate developer in India with over 85 million square feet of commercial space, is the company’s promoter.

WeWork India, headquartered in Bengaluru, has been operating since 2017 under an exclusive licensing agreement with the global WeWork brand. The company runs 59 centres across office markets, including Bengaluru, Mumbai, Pune, Hyderabad, Gurgaon, Noida, Delhi, and Chennai. Its total leasable area is 6.48 million square feet, with 94,440 desks.

Financials

For FY24, the company reported a loss of ₹135.8 crore, lower than the ₹146.8 crore loss in the previous year. Revenue increased by 26.7%, reaching ₹1,665.1 crore, up from ₹1,314.5 crore in FY23. In the first six months of FY25 (April-September 2024), WeWork India posted a profit of ₹174.6 crore on revenue of ₹918.2 crore.

Merchant Bankers and Competition

JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM have been appointed as the book-running lead managers for the IPO.

WeWork India’s listed competitor in India is Awfis Space Solutions. Another managed workspace provider, IndiQube Spaces, filed IPO papers in December 2024 to raise ₹850 crore.

The company has stated that it does not plan to conduct a pre-IPO placement before the listing.

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