Key Points:
- WeWork India launched a Rs 3,000 crore IPO.
- Raised Rs 1,348 crore from anchor investors.
- FY24 revenue Rs 2,700 crore with strong workspace growth.
The WeWork India IPO opened today, aiming to raise Rs 3,000 crore through a public share sale. The coworking space operator, majority-owned by Bengaluru-based Embassy Group, is part of the U.S.-founded WeWork network.
The subscription window for investors began at 10 a.m. and will remain open until Oct. 7. Share allotment is scheduled for Oct. 8, with listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) set for Oct. 10.
Strong anchor investor participation
Ahead of the WeWork India IPO, the company secured Rs 1,348 crore from anchor investors on Oct. 2. The list includes leading domestic mutual funds such as ICICI Prudential Mutual Fund, HDFC Mutual Fund, Motilal Oswal Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund and Canara Robeco Mutual Fund.
Insurance companies also participated, including Canara HSBC Life Insurance, SBI General Insurance, Kotak Mahindra Life Insurance and Bajaj Allianz Life Insurance. Global investors joined as well, with Goldman Sachs Fund, Al Mehwar Commercial Investments LLC (Wanda) and Allianz Global Investors committing funds.
Issue structure and price band
The WeWork India IPO consists entirely of fresh equity issuance worth Rs 3,000 crore. According to the prospectus, the funds will be used to expand WeWork India’s coworking footprint across major Indian cities, repay existing debt and strengthen working capital.
The price band for the shares has been set at Rs 280 to Rs 300 per share, with a lot size of 50 shares for retail investors. At the upper end of the band, the IPO values the company at approximately Rs 20,000 crore.
Sector growth and timing
The WeWork India IPO comes during a revival in the flexible workspace sector. Hybrid work models adopted after the COVID-19 pandemic have fueled demand for coworking spaces among corporates, startups and small enterprises.
Industry data indicates that flexible workspaces now account for about 20 percent of total office leasing activity in India, compared to 8 percent before the pandemic. Analysts say companies are prioritizing agility and lower long-term lease commitments, trends that favor operators like WeWork India.
Financial performance
According to the company’s filings, WeWork India reported revenue of Rs 2,700 crore in fiscal year 2024, up 22 percent from the previous year. Net profit stood at Rs 210 crore, marking the company’s third consecutive year of profitability.
Occupancy rates across its properties averaged 85 percent in 2024, compared with 78 percent in 2023. The firm currently operates 7 million square feet of coworking space across Bengaluru, Mumbai, Gurugram, Pune and Hyderabad.
Risks highlighted
The prospectus notes risks including potential slowdown in commercial real estate demand, competition from other coworking operators and dependency on long-term lease agreements with landlords. Rising interest rates and global macroeconomic uncertainties are also cited as challenges.
Analysts caution that while the company has posted steady growth, its performance will depend on sustained demand for flexible office solutions and its ability to manage expansion efficiently.
Background on ownership
WeWork India is a joint venture, with Embassy Group holding the majority stake. The U.S.-based WeWork, which filed for bankruptcy protection in 2023, holds a minority interest but does not manage daily operations in India. Embassy Group has provided capital support and led the company’s expansion in the Indian market since 2017.
Despite its parent company’s financial struggles, WeWork India has grown steadily. Executives say the local unit is financially independent and not affected by WeWork’s restructuring in the U.S.
Outlook
Market observers expect the WeWork India IPO to attract strong participation from institutional and retail investors, given the high demand from anchors and the sector’s growth prospects. Subscription data will be closely monitored over the next three days.
If the issue is fully subscribed, WeWork India will join other listed real estate and workspace companies on Indian exchanges, offering investors exposure to the fast-growing coworking segment.
