WeWork India Files Papers with SEBI for IPO WeWork India Management Limited (WeWork India), the largest operator in the Indian workspace sector has recently filed its Draft Red Herring Prospectus (DRHP with the market regulator Securities and Exchange Board of India (SEBI).
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WeWork India Management Limited (WeWork India), the largest operator in the Indian workspace sector has recently filed its Draft Red Herring Prospectus (DRHP with the market regulator Securities and Exchange Board of India (SEBI).
The company operates in the flexible office-space solutions market with a customer base that spans sectors. According to Coldwell Banker Richard Ellis (CBRE), the American commercial real estate services and investment company, WeWork India has been the leader in the country in its sector and has been recording the highest revenue for the past three Fiscal.
The initial public offering (IPO) will consist of an offer for sale (OFS) of up to 43,753,952 equity shares by Embassy Buildcon LLP the 'Promoter Selling Shareholder' selling 33,458,659 equity shares and up to 10,295,293 equity shares by 1 Ariel Way Tenant Limited which is the 'Investor Selling Shareholder'.
The company mentioned in a release that it will not receive any proceeds from the OFS part of the IPO.
JM Financial Limited, ICICI Securities Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, and 360 ONE WAM Limited have been announced as the book-running lead managers (BRLMs) to the issue.
WeWork India is majority-owned by Embassy Group, one of India's leading real estate developers.
WeWork Global however, was in the news in 2023 as it filed for bankruptcy in the US, following stress post-pandemic, soaring real estate prices, high leasing rates, and its inability to pay back debt. The Indian arm had then highlighted that it is an independent venture, remaining rather unfazed by the insolvency and thriving with major expansion plans.
In January WeWork India also announced fundraising of INR 500 crore through the rights issue of securities through its shareholders, WeWork's parent arm, and the Embassy Group. The company said that the funds will be used to repay existing debt, reduce capital costs, and work towards achieving a 'debt-free status'.
As of September 30, 2024, WeWork India operates 94,440 desks across 59 operational centers with an aggregate leaseable area for operational centers of 6.48 million square feet.
