 "InGovern says WeWork India has resolved governance issues post IPO")
Proxy advisory firm InGovern Research has said that WeWork India Management has addressed its earlier governance concerns, noting that the company’s recent public listing is a key step towards improved transparency and oversight.
In the run-up to its ₹3,000-crore initial public offering (IPO), InGovern had raised questions about WeWork India’s profitability record, brand-licensing structure, and the absence of a primary fundraise in the IPO.
“WeWork India reiterated that its financial position remains robust, supported by strong operational Ebitda and positive cash flows since FY23. The company emphasised full regulatory compliance in its disclosures, noting that promoter equity infusions earlier this year reflected confidence in the business. Its long-term brand-licensing and management agreements remain stable. Risk factors and related proceedings have been transparently disclosed in accordance with Sebi norms,” InGovern said in an addendum to its earlier report, which incorporated the company’s detailed clarifications.
Strong cash flow and occupancy gains
In its response to the advisory firm, the Embassy Group-backed company said its operating cash flow has remained positive since FY23, with net cash generated from operations at ₹942 crore, ₹1,162 crore, and ₹1,290 crore in FY23, FY24, and FY25, respectively.
WeWork India added that it continues to maintain strong operational profitability, with Ebitda margins above industry peers. “Even with matured centre occupancy of 80.7 per cent, our business generated a healthy adjusted Ebitda margin of 21.61 per cent, the highest in the industry. Occupancy for the period ended June 2025 further improved to 81.23 per cent,” the company said.
WeWork India, which listed on the bourses on 10 October, is currently valued at ₹8,661 crore.
Promoters use IPO proceeds to retire debt
On its IPO being a complete offer for sale, WeWork India said a significant portion of the proceeds was used by promoters to retire debt and reduce share pledges.
“The repayment has reduced the pledge on WeWork India shares to a nominal 15 per cent. While this has been disclosed in the risk factors, the lower pledge now poses minimal control risk,” the company noted.
Brand-licensing clarity
Addressing concerns about the use of the ‘WeWork’ brand, the firm said its brand-licensing arrangement with WeWork International is long-term and stable.
“Brand-licensing structures are common across the industry, and we have appropriate safeguards in place. We enjoy a strong relationship with WeWork Global and do not foresee any significant risk. Embassy has a long-term agreement for the exclusive use of the brand name in India,” the company said.