Bombay HC seeks Sebi response on plea alleging irregularities in WeWork IPO

Bombay HC has sought Sebi's response on a plea challenging WeWork India's IPO, alleging irregularities in DRHP, undisclosed complaints, and misrepresentation of ties with the global WeWork brand

The Bombay High Court has sought a response from the Securities and Exchange Board of India (Sebi) in a case challenging the approval of WeWork India's initial public offering (IPO), reported Bar and Bench.

 

The case stems from a petition filed by retail investor Vinay Bansal, who has alleged that the company's draft red herring prospectus (DRHP) contains many irregularities and accused Sebi of inaction on the same, effectively violating its own regulatory framework.

 

Allegations against WeWork

The petitioner alleged that the company reported heavy losses and a negative net worth while presenting an overly optimistic growth outlook without adequately disclosing associated risks.

 

 

He further claimed that the company withheld key information on ongoing complaints and disputes that could influence investor decisions. According to LiveLaw, these cases include a 2014 Central Bureau of Investigation (CBI) chargesheet for corruption; Enforcement Directorate (ED) proceedings under the Prevention of Money Laundering Act (PMLA); and an Economic Offences Wing (EOW) chargesheet from November 2024. The petition also alleges that the EOW case was omitted from the January 2025 DRHP and added only in August 2025 after the petitioner raised it.

 

The petition also alleges that WeWork India misrepresented its ties with the global WeWork brand, leading investors to assume it had the parent firm’s financial backing and stability. It alleged that the company does not own the 'WeWork' trademark but operates under a management licence that is valid only while the Promoters maintain control.

 

WeWork's IPO

 

WeWork India’s IPO, worth ₹3,000 crore, opened for subscription on October 3, 2025, and is scheduled to close on October 7. Shares, priced ₹615-₹648 with a lot size of 23, will list on NSE and BSE around October 10. The IPO comprises an offer for sale of 46.3 million shares with no fresh issue. According to the prospectus, the company will not receive any fresh funds from the issue, and existing shareholders will sell their stake through the offer.