WeWork India, the co-working major, has received approval from the market regulator Securities and Exchange Board of India, to launch its Initial Public Offering (IPO). As per the DRHP filing by the company, the entire IPO of the real estate company consists of an offer for sale of equity shares.
WeWork’s promoters, Embassy Buildcon and Ariel Way Tenant, are offloading a total of 4.37 crore equity shares in the IPO of the company. While Embassy Buildcon is selling 3.34 crore equity shares, Ariel Way Tenant is selling 1.02 crore shares. As the whole IPO consists of OFS, WeWork will not receive any proceeds from the IPO.
WeWork India: IPO objectives?
WeWork Global had in June 2021 invested USD 100 million in WeWork India. In January this year, the company raised Rs 500 crore through a rights issue, mainly to reduce debt and achieve further growth.
ALSO READAnthem Biosciences IPO fully subscribed on Day 2: From 20% GMP spike to allotment – 4 must-know details
In its draft papers, WeWork India stated that the object of the offer is to achieve the benefits of listing the equity shares on the stock exchanges.
“Our company expects that the listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders. The listing will also provide a public market for the equity shares in India,” WeWork India had said in the DRHP.
WeWork’s business performance
In India, the Embassy Group has the exclusive license of the ‘WeWork’ brand, and it has around a 76.21 per cent stake, while WeWork Global owns 23.45 per cent. WeWork primarily rents Grade A office space from leading developers across Tier 1 cities and operates them as flexible workspaces. The company has 77 lakh square feet of area, of which 70 lakh square feet is currently operational. Its operational desk capacity has reached 1.03 lakh, and it has centres in Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, and Delhi.
As for the revenue of the company, during FY24, WeWork India posted a net loss of Rs 135.83 crore over a total income of Rs 1,737.16 crore. The company, however, posted a profit of Rs 174.13 crore in the first six months of FY25.
» Read More
