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WeWork India Management Ltd's IPO opened with a 4 per cent subscription on the first day, receiving bids for 11.1 lakh shares against 2.54 crore shares on offer. Retail investors subscribed 14 per cent, while qualified institutional and non-institutional categories saw minimal participation at 2 per cent each. The Rs 3,000-crore offer for sale, entirely by existing shareholders including Embassy Buildcon LLP and WeWork Global's Ariel Way Tenant Ltd, is intended to enhance visibility, provide liquidity to shareholders, and establish a public market for WeWork India shares without raising funds for the company.
WeWork India Management Ltd's initial public offering (IPO) received a subdued response on the first day, with just 4 per cent subscription. Data from NSE showed that bids were placed for 11,10,440 shares out of 2,54,89,748 shares available for sale. Advertisement
Among the categories, retail individual investors showed relatively stronger interest, with 14 per cent of their allocation subscribed. Qualified institutional buyers and non-institutional investors recorded only 2 per cent subscription each, indicating limited demand from larger market participants at the start of the issue.
The company has already secured slightly over INR 1,348 crore from anchor investors. The IPO, which is part of an offer for sale (OFS) worth INR 3,000 crore, is set to conclude in a few days. The share price band has been fixed between INR 615 and INR 648, valuing the company at approximately INR 8,685 crore at the upper price range.
The sale is entirely by existing shareholders, with promoter group entity Embassy Buildcon LLP and investor Ariel Way Tenant Ltd, part of WeWork Global, divesting their stakes. Currently, Embassy Group holds about 76.21 per cent in WeWork India, while WeWork Global owns 23.45 per cent. As the proceeds from the OFS go entirely to the selling shareholders, the company itself will not receive any funds from this transaction.
In its draft papers, WeWork India noted that the IPO aims to achieve the benefits of listing on stock exchanges, including enhanced visibility, liquidity for existing shareholders, and the creation of a public market for its shares in India.
Founded in 2017, WeWork India operates under an exclusive licence for the WeWork brand in India and is promoted by Bengaluru-based real estate developer Embassy Group. The company manages 77 lakh sq ft of space across Tier-1 cities such as Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. Out of this, 70 lakh sq ft is operational, offering a desk capacity of 1.03 lakh. WeWork India currently employs over 500 people and continues to expand its footprint across major commercial hubs.
Source PTI
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