WeWork India IPO: Rapid growth, hidden risks; what investors should know

WeWork India IPO: The initial public offering (IPO) of the flexible workspace operator, WeWork India Management, will open for bidding on Friday, October 3, 2025. The public issue worth ₹3,000 crore comprises an offer for sale (OFS) of 46.3 million equity shares and no fresh issue component.  

 

The three-day subscription window is scheduled to close on Tuesday, October 7, 2025. The basis of allotment of shares is likely to be finalised on Wednesday, October 8, 2025. The stock will be listed on the National Stock Exchange (NSE) and BSE, tentatively on Friday, October 10, 2025. 

 

WeWork India IPO is available at a price band of ₹615 to ₹648 per share, with a lot size of 23 shares. 

 

 

MUFG Intime India is the registrar for the issue. JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital, and 360 ONE WAM are the book-running lead managers.

 

According to RHP, the company will not receive any fresh funds from the issue, and existing shareholders will sell their stake through the offer. 

Here are the key risks associated with investing in the WeWork India IPO:

Legal proceedings against promoter: In 2014, the Enforcement Directorate initiated proceedings under the Prevention of Money Laundering Act, 2002, against the company's promoter and chairman, Jitendra Mohandas Virwani. Any unfavourable outcome in this matter could negatively affect its business operations, reputation, financial health, and overall performance.

 

Sebi show-cause notice: Embassy Office Parks Management Services Private (EOPMSPL), its group company, has been issued a show-cause notice under the Securities and Exchange Board of India Act, 1992. These proceedings could potentially have a negative impact on the company.

 

Pledged promoter shares: A portion of the promoters' equity shares has been pledged with a security trustee as part of their borrowing arrangements. If lenders enforce these pledges, it could lead to a reduction in promoters' shareholding, potentially affecting the market value of the company's equity shares.

 

Long-term lease agreements: As of June 30, 2025, WeWork has entered into long-term fixed-cost lease agreements with landlords covering approximately 7.35 million square feet across 60 of its 68 operational centres in eight cities. Any inability to meet lease payment obligations, refusal by landlords to renew leases, or physical damage to these centres could negatively affect the business and overall profitability.

 

Continued losses and negative cash flow: WeWork reported net losses and negative basic and diluted earnings per share for the three months ended June 30, 2025 and 2024, as well as for Fiscals 2024 (FY24) and 2023 (FY23). Additionally, there has been a net decrease in cash and cash equivalents during these periods. If the company fails to improve revenues and control costs, its financial condition, operations, and cash flows could be adversely affected.  ALSO READ | Gaudium IVF refiles IPO papers with Sebi; ups OFS portion to 9.49 million

Here are the key competitive strengths of WeWork India, as outlined in the RHP:

Strong brand recognition and leadership in India: According to the CBRE Report, WeWork India is a leading premium flexible workspace operator in India and has been the largest operator by total revenue in the last three financial years. WeWork India consistently recorded the highest search volume throughout October 2023 to December 2024, which underscores its strong brand recognition and leadership in India, as per the RHP.

 

Premium pricing and efficiency: The company has significantly expanded its desk capacity while maintaining high occupancy and strong revenue growth of 26.7 per cent in FY24 and 17.1 per cent in FY25. With premium pricing (2.7x rent multiple vs. industry average of 1.9x to 2.5x) and tight cost control, WeWork has sustained strong Ebitda margins and improved operational efficiency. Ebitda stands for earnings before interest, tax, depreciation and amortisation. 

 

Diverse and loyal member base: As of June 30, 2025, WeWork has served 87,247 members, reflecting steady growth. Its presence in premium Grade A properties and focus on customer experience have helped attract and retain a diverse, high-quality mix of enterprises, MNCs, startups, and professionals, the company said in its RHP.

 

Comprehensive workspace solutions: WeWork offers one of the widest ranges of flexible workspace solutions in India, from enterprise suites to co-working and hybrid setups, with lease terms ranging from pay-per-use to long-term. The company's tech-enabled, high-quality centres cater to both domestic and global clients, allowing easy scalability and seamless booking via the WeWork app.

 

Strong presence in Tier 1 cities: As of June 30, 2025, around 94 per cent of its 7.07 million sq. ft. portfolio was in Grade A properties across Tier 1 cities like Bengaluru, Mumbai, and Delhi. Backed by strong developer partnerships, our premium Centres benefit from high demand and robust office space absorption in these top-tier markets.