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WeWork India has secured approval from SEBI to launch its Initial Public Offering, paving the way for its promoters Embassy Buildcon LLP and 1 Ariel Way Tenant Ltd to sell their stakes via an Offer for Sale. Backed by Embassy Group and operating under the WeWork brand since 2017, the company is riding a wave of strong demand for flexible workspaces across major Indian cities. While it recorded a net loss in FY24, it turned profitable in the first half of FY25. The IPO, which will not raise fresh capital, aims to enhance the company's visibility and liquidity in public markets.
WeWork India, a major player in the co-working sector, has received the green light from the Securities and Exchange Board of India (SEBI) to launch its much-anticipated Initial Public Offering. This regulatory nod enables its promoters to monetise their holdings amid a surge in demand for office spaces across India's top cities. Advertisement
The Bengaluru-headquartered firm, which filed its Draft Red Herring Prospectus earlier this year, got SEBI's observation this past week, completing a key milestone toward its listing. WeWork India was founded in 2017 and operates exclusively under the global WeWork brand through a licensing agreement. It is promoted by Embassy Group, a leading real estate developer based in Bengaluru, which holds a majority stake of 76.21%, while WeWork Global holds 23.45%.
According to the draft papers, the IPO will be entirely an Offer for Sale of up to 43.7 million equity shares. Embassy Buildcon LLP plans to sell up to 33,458,659 shares, and WeWork Global's affiliated entity, 1 Ariel Way Tenant Ltd, will offload up to 10,295,293 shares. The IPO will not involve any fresh issuance, meaning WeWork India will not receive any direct proceeds.
Financially, the company reported a net loss of INR 135.83 crore in FY24, despite generating a total income of INR 1,737.16 crore. However, it rebounded in the first half of FY25 with a profit of INR 174.13 crore and revenues of INR 960.76 crore.
WeWork India stated in its filings that the main objective of the offer is to list its equity shares and enhance brand visibility, create a public market, and offer liquidity to existing shareholders.
The company has steadily grown its footprint, offering flexible workspaces to corporates, startups, and individuals across eight major cities Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. Its operational portfolio covers 7 million square feet out of a total 7.7 million square feet, supporting over 1.03 lakh desks. It employs more than 500 people.
WeWork India's market positioning received a significant boost when WeWork Global invested USD 100 million in June 2021. It also raised INR 500 crore through a rights issue earlier this year to pare debt and drive growth.
This SEBI nod comes just as Smartworks Coworking Spaces' INR 583 crore IPO received robust investor response with a subscription of 13.45 times. Other flexible workspace operators like Awfis and EFC (India) Ltd have already listed on Indian stock exchanges, underlining a trend of co-working firms turning to capital markets to fuel expansion plans.
Source PTI
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