WeWork India’s IPO: A Significant Step Towards Growth
WeWork India is making headlines as it prepares for its much-anticipated initial public offering (IPO), set to open for public subscription on October 3. The company has successfully secured over ₹1,348 crore from anchor investors, reflecting strong confidence in its growth trajectory. This article delves into the details surrounding the IPO, the interest from investors, and the company’s future prospects.
Strong Interest from Domestic and Global Players
The enthusiasm surrounding WeWork India’s IPO is evident from the robust participation of both domestic and international investors. According to a circular on the Bombay Stock Exchange (BSE) website, 2,08,06,548 equity shares were allocated to 67 funds at a price of ₹648 per share, culminating in an impressive anchor investment size of ₹1,348.26 crore.
Among the domestic institutions, notable mutual fund giants such as ICICI Prudential Mutual Fund, HDFC Mutual Fund, and Aditya Birla Sun Life Mutual Fund have shown significant interest. Additionally, insurance firms like SBI General Insurance and Kotak Mahindra Life Insurance have also participated, indicating a broad spectrum of support from the financial sector. On the global front, prominent players such as Goldman Sachs Fund and Allianz Global Investors have joined the anchor book, further solidifying the demand for WeWork India’s shares.
IPO Details and Structure
WeWork India’s IPO is valued at ₹3,000 crore, with shares priced between ₹615 and ₹648. The subscription period runs from October 3 to October 7, and at the upper price point, the company is valued at nearly ₹8,685 crore. The offering consists entirely of an Offer for Sale (OFS) of up to 4.63 crore equity shares, with promoter entity Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) offloading their stakes. Importantly, since this is an OFS, WeWork India will not receive any proceeds from the sale; instead, the funds will go directly to the selling shareholders.
Currently, Embassy Group holds approximately 76.21% of WeWork India, while WeWork Global owns 23.45%. The IPO aims to enhance the company’s visibility, provide liquidity to existing investors, and establish a public market for its shares in India.
Expansion and Market Presence
Founded in 2017, WeWork India has rapidly expanded its footprint across major Tier-1 cities, including Bengaluru, Mumbai, Delhi, Chennai, Hyderabad, Pune, Gurugram, and Noida. The company manages a total portfolio of 77 lakh square feet, with 70 lakh square feet currently operational and a desk capacity of over 1.03 lakh. With a workforce of more than 500 employees, WeWork India is well-positioned to capitalize on the growing demand for flexible workspaces.
The IPO structure reserves 75% of shares for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 10% for retail investors. Investors can bid for a minimum of 23 shares and in multiples thereafter. The listing on the stock exchanges is anticipated by October 10.
Financial Backing and Future Prospects
WeWork Global had previously invested $100 million in 2021, showcasing its commitment to the Indian market. Additionally, WeWork India raised ₹500 crore in January 2024 through a rights issue aimed at reducing debt and fueling expansion. With the upcoming IPO, the company seeks to strengthen its market presence, broaden its investor base, and solidify its position as one of India’s leading flexible workspace providers.
In conclusion, WeWork India’s IPO marks a pivotal moment in its journey, reflecting strong investor confidence and a promising outlook for the future. As the company prepares to enter the public market, it aims to leverage this opportunity to enhance its growth trajectory and continue its expansion in the dynamic landscape of flexible workspaces in India.