WeWork India IPO: Rs 3,000 Cr Launch on Oct 3

New Delhi, Sep 28 (PTI) Co-working major WeWork India is gearing up to launch its initial public offering (IPO) on October 3, with people aware of the matter pegging the issue size to nearly Rs 3,000 crore.

The issue will close on October 7, with bidding for anchor investors opening for a day on October 1, as per the red herring prospectus (RHP).

As per the draft papers, the proposed IPO is entirely an Offer for Sale (OFS) of up to 4.63 crore equity shares. Promoter group firm Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) will offload shares.

Since the issue is an OFS, WeWork India itself will not receive any proceeds from the listing.

Currently, Embassy Group holds about 76.21 per cent in WeWork India, while WeWork Global owns 23.45 per cent.

Established in 2017, WeWork India operates under an exclusive license of the 'WeWork' brand in India and is promoted by the Bengaluru-based real estate major Embassy Group.

In its draft papers, WeWork India stated that the objective of the offer is to achieve the benefits of listing its equity shares on the stock exchanges. The company expects the listing to enhance visibility, provide liquidity to existing shareholders, and establish a public market for its stock in India.

WeWork Global invested USD 100 million in 2021, while in January 2024, the company raised Rs 500 crore through a rights issue, primarily to reduce debt and support growth.

WeWork India's operations are spread across major tier 1 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai.

It currently manages 77 lakh sq ft of space, of which 70 lakh sq ft is operational, with a desk capacity of 1.03 lakh. The company employs more than 500 people.

With the IPO scheduled in early October, WeWork India is expected to debut on the stock exchanges on October 10.