WeWork India IPO tumbles to sail through; subscription lags at 16%, GMP nil

WeWork India IPO Subscription Status: Workspace solutions provider WeWork India Management has received a sluggish response from the investors for its initial public offering (IPO), which is set to close for subscription today.

 

The public issue has only been booked 16 per cent till 11:30 AM on Tuesday, October 6, showed the NSE data. The demand remains poor across the investor categories. Among the individual categories, retail investors have booked only 46 per cent of the quota reserved for them, while non-institutional investors (NIIs) and the qualified institutional buyers (QIBs) have booked their category by 8 per cent, 9 per cent respectively.

 

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WeWork India IPO grey market premium (GMP) 

The lacklustre sentiment extended towards the grey markets as well where the unsubscribed shares of WeWork India were trading flat around ₹648 per share, same as the upper end of the IPO price, according to the sources tracking unofficial market activities. Thus the grey market premium (GMP) of WeWork India IPO remain nil on Tuesday.  ALSO READ | Brokerages upbeat on LG Electronics IPO: GMP up 28%; should you subscribe?

WeWork India IPO review

Analysts at Anand Rathi research have recommended the investors to apply for the issue for the long term perspective, while Angel One, and SBI Securities have assigned Neutral rating on the offering. READ MORE

WeWork India IPO details

The public offering of WeWork India consists of an entirely offer for sale (OFS) of of 46.3 million equity shares worth ₹3000 crore.  The public offering is priced within a band of ₹615–₹648 per share, with a lot size of 23 shares. Investors can bid for a minimum of 23 shares and in multiples thereafter.

 

A retail investor would need a minimum of ₹14,904 to bid for one lot (23 shares) at the upper price band. Retail investors can bid for a maximum of 13 lots or 299 shares, with an investment of ₹1,93,752.  With the public offering closing for subscription today, the basis of allotment for WeWork India IPO shares is expected to be finalised on Wednesday, October 8. The company’s shares will be credited to demat accounts tentatively on Thursday, October 9.  ALSO READ | Canara HSBC Life ₹2,517-cr IPO: Price band set at ₹100-106; key details 

Shares of WeWork India are expected to debut on D-Street by listing on the BSE and NSE on Friday, October 10.  MUFGIntime India is serving as the registrar for WeWork India IPO, while the book-running lead managers are JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM.  WeWork India will not receive any proceeds from the issue, as the funds will go to investors selling through the offer for sale.

About WeWork India Management

WeWork India Management Launched in 2017, WeWork India Management Limited is a leading premium flexible workspace operator in India and has been the largest operator by total revenue in the past three fiscals. They have played a significant role in the growth of the flexible workspace sector in India and been a key contributor for the evolution of flexible workspace products and services.