WeWork India’s ₹3,000-crore IPO opened for public subscription on Friday at a price band of ₹615–₹648 per share.
The ₹3,000-crore initial public offering (IPO) of WeWork India Management opened for public subscription on Friday and will close on October 7.
The initial response on Day 1 was muted, with the IPO subscribed just 0.02 times. Retail investors showed limited participation at 0.10 times, while the QIB and NII categories saw negligible interest at 0.00 and 0.01 times, respectively.
The employee segment fared better with a 0.60 times subscription. In the grey market, the IPO traded at a premium of ₹15, indicating a modest listing gain of about 2.3% based on the upper price band of ₹648.
The IPO is a pure offer for sale of 4.63 crore equity shares, priced between ₹615 and ₹648 per share. Since the issue involves no new equity, the proceeds will be allocated entirely to the selling shareholders – Embassy Buildcon LLP and Ariel Way Tenant. Embassy is offloading 25% of its stake and Ariel is selling 7% stake.
Kotak Mahindra Capital Company, Axis Capital, BNP Paribas, Citigroup Global Markets India, and HDFC Bank are the book-running lead managers, while MUFG Intime India is the registrar to the issue.
Company Overview
Founded in 2016, WeWork India Management provides a range of workspace solutions, including custom-designed buildings, enterprise office suites, managed offices, private offices, co-working spaces, and hybrid digital offerings.
As of June 30, the company operated 68 centres across eight cities, with a total desk capacity of over one lakh. Its clients include Amazon Web Services India, JP Morgan Services India, Discovery Communications India, Deutsche Telekom Digital Labs, CBA Services, and Grant Thornton Bharat LLP.
Strengths And Weaknesses
According to SMC Global Securities, WeWork India’s strengths include strong brand recognition and leadership both in India and globally, a leading position in a fast-growing market, and the backing of the Embassy Group along with its relationship with WeWork Global.
The brokerage also pointed to the company’s presence in Grade A office properties in top-tier micro-markets, long-standing relationships with major developers, a wide range of flexible workspace products, and a growing, diverse member base.
SMC added that the company’s focus on premium pricing, capital efficiency, and its experienced management team support its long-term performance.
They also flagged several risks, including potential disruptions to WeWork International’s operations or damage to the WeWork brand.
It cautioned that challenges in retaining or adding members and growing competition in the flexible workspace industry could pressure growth, pricing, and market share.
Financial Performance
WeWork India’s total income rose from ₹1,422.77 crore in FY23 to ₹2,024 crore in FY25, while revenue from operations climbed to ₹1,949.21 crore. The company’s adjusted EBITDA margin improved to 21.61% in FY25 from 14.55% in FY23.
Its revenue-to-rent multiple for FY25 stood at 2.7, higher than the industry average range of 1.9x to 2.5x. The company reported 87,247 members as of June 30, with a weighted average membership tenure of 26 months.
Valuation And Ranking
At the upper end of the price band, WeWork India is valued at a P/E multiple of 60.64 based on trailing twelve-month EPS of ₹10.69 and a P/B ratio of 45.79. At the lower price band of ₹615, the P/E multiple stands at 57.56 and the P/B ratio at 43.45.
SMC Global Securities assigned the IPO a rating of 2/5.
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