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WeWork India Management Limited, a major player in flexible workspaces, made its stock market debut with shares opening slightly above the issue price but ending 3% lower. The IPO raised INR 3,000 crore (USD 338.16 million) and was fully subscribed 1.15 times, with strong institutional demand but weak retail and non-institutional participation. Analysts have flagged concerns over valuation, governance practices, and the absence of fresh capital. Despite operating in eight cities with growing revenue, the company faces competition from better-performing peers like Smartworks and IndiQube Spaces.
WeWork India Management Limited, a prominent provider of flexible office spaces, recently debuted on the NSE and BSE. Its shares opened at INR 650 on the NSE and INR 646.50 on the BSE, slightly above the issue price of INR 648. During the trading day, the stock dipped to an intraday low of INR 614.25 on the NSE and INR 615 on the BSE, eventually settling 3% below the issue price. This decline has highlighted investor concerns about the company's valuation and governance structure. Advertisement
The IPO, which was entirely an offer for sale, raised INR 3,000 crore (USD 338.16 million). It was fully subscribed 1.15 times, mainly supported by Qualified Institutional Buyers (QIBs), who subscribed 1.79 times. Retail investors showed cautious interest, subscribing to 61% of their allocated shares, while Non-Institutional Investors (NIIs) subscribed to only 23%. This mix reflects a selective and careful approach among smaller investors.
Analysts have raised questions about the company's financial health and transparency. Governance advisory firm InGovern pointed to weak financials, limited disclosure transparency, and high operational costs. WeWork India reported a loss of INR 14.14 crore in the first quarter of FY25, even as revenue grew 19% to INR 535.31 crore. The absence of fresh capital through the IPO has led to questions about the company's ability to sustain operations and fund expansion, particularly as demand growth slows and competition intensifies.
WeWork India operates flexible office spaces across eight major Indian cities, facing competition from peers such as Smartworks and IndiQube Spaces. Smartworks, which went public in July 2025, has seen its stock rise 35% since listing. IndiQube Spaces, after an initial 15% decline, has recovered to trade 4% above its listing price. In comparison, WeWork India's projected revenue growth of 22% over fiscal years 2023-2025 appears less compelling to investors, especially against the backdrop of valuation and governance concerns.
The company's current valuation stands at roughly INR 84.25 billion (USD 950 million), which some analysts consider high given market conditions. The lack of fresh capital infusion, alongside concerns over governance practices and transparency, has contributed to a cautious investor outlook. Moving forward, the company's ability to maintain occupancy, control costs, and improve disclosure will be closely watched by investors.
Source Reuters
5th Jun, 2025
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