Office space company WeWork India gets regulatory approval for IPO

Offer for sale of 43.7 mn shares; proceeds go to Embassy Buildcon and 1 Ariel Way Tenant Ltd

WeWork India Management, a flexible office space provider majority-owned by Bengaluru-based Embassy Group, has received the market regulator’s approval for an initial public offering (IPO).

 

The company had submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) in February 2025. Sebi agreed to the IPO last week after putting it in abeyance in March.

 

The IPO comprises an offer for sale (OFS) of equity shares of up to 43.7 million equity shares. The offer proceeds will not go to the company but to selling shareholders after deducting offer-related expenses and relevant taxes. 

 

The OFS comprises up to 33.4 million equity shares by Embassy Buildcon LLP (promoter selling shareholder) and up to 10.2 million equity shares by 1 Ariel Way Tenant Limited (investor selling shareholder).

 

The company’s net debt was Rs 529.43 crore as of September 2024. Revenue from operations in FY2024 stood at Rs 1,665.14 crore, compared to Rs 1,314.52 crore in FY23.

 

The company incurred a loss of Rs 135.77 crore in FY24, compared to a loss of Rs 146.81 crore in FY23.

 

WeWork India has workspaces in Bengaluru, Mumbai, Pune, Hyderabad, Gurgaon, Noida, Delhi, and Chennai. As of June 30, 2024, grade A properties accounted for approximately 93 per cent of its portfolio. Its portfolio comprised 94,440 desks at 59 operational centres with an aggregate leasable area of 6.48 million square feet.

 

The company is a branch of US-based WeWork Global, a flexible office space provider with approximately 600 wholly owned and licensed locations in 35 countries.