WeWork, Studds get Sebi nod for IPOs

New Delhi, Jul 15 (PTI) Premium flexible workspace operator WeWork India Management Ltd and helmets manufacturer Studds Accessories have received Sebi's go-ahead to float their Initial Public Offerings (IPOs).

These companies, which filed their preliminary IPO papers with Sebi between February and March, obtained their observations on July 8, an update with the regulator showed on Tuesday.

In Sebi's parlance, receiving observations is equivalent to getting the go-ahead to proceed with a public issue.

WeWork India, backed by the Embassy Group, plans to launch an IPO that will consist entirely of an Offer for Sale (OFS) of up to 4.37 crore equity shares, according to its Draft Red Herring Prospectus (DRHP).

Under the OFS route, promoter Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd will offload their stake.

Earlier, in late March, Sebi had placed WeWork India's IPO proposal in "abeyance" before granting its approval.

Launched in 2017, WeWork India Management is a leading premium flexible workspace operator in the country. It provides flexible, high-quality workspaces to customers, which include companies of all sizes, large enterprises, small and mid-size businesses, startups, as well as individuals.

Similarly, Studds Accessories' IPO will also be an OFS, through which the promoter group and other existing shareholders will sell 77.9 lakh shares, according to its draft papers.

Since both IPOs are structured entirely as OFS, the issuing companies will not receive any proceeds from the public offer. Instead, the funds raised will go directly to the selling shareholders.

Studds Accessories designs, manufactures, markets and sells two-wheeler helmets under the 'Studds' and 'SMK' brands and other accessories such as two-wheeler luggage, gloves, helmet locking device, rain suits, riding jacket and eyewear under the 'Studds' brand.

The products are sold pan-India and in more than 70 countries, with key export markets situated across the Americas, Asia (excluding India), Europe and the rest of the world.

Shares of both companies are proposed to be listed on the BSE and NSE.