WeWork India files DRHP for IPO; promoter Embassy Buildcon to offload 3.34 crore shares

WeWork India IPO: Workspace operator WeWork India Management Ltd may soon launch its initial public offering (IPO) in India. On February 1, the Bengaluru-based company filed its draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through a public issue.

The DRHP did not declare the total value of the IPO, but disclosed that it would be entirely an offer-for-sale (OFS) of up to 4.37 crore equity shares. This means that entire proceeds from the public issue will go to the shareholders selling stake in the company. WeWork India will not be eligible to receive any funds as no fresh shares are being issued.

According to the offer documents, promoter selling shareholder Embassy Buildcon LLP will offload up to 3.34 crore equity shares, while investor selling shareholder 1 Ariel Way Tenant Ltd will sell up to 1.02 crore shares through the WeWork India IPO.

JM Financial Ltd, ICICI Securities Ltd, Jefferies India Pvt. Ltd, Kotak Mahindra Capital Co. Ltd and 360 ONE WAM Ltd are the book-running lead managers to the issue.

The DRHP did not give any specific details on the pricing of shares or timing of the issue.

Launched in 2017, WeWork India is a leading premium flexible workspace operator in India. It is majority-owned and promoted by Embassy Group, one of India’s leading real estate developers. Karan Virwani is CEO of WeWork India.

Currently, Embassy Buildcon holds a 73.8% stake in the company, while 1 Ariel holds 22.7% on a fully diluted basis. According to reports, the average cost of acquisition for Embassy and 1 Ariel stood at ₹161.83 and ₹65.88 per share, respectively.

According to draft papers, WeWork India’s net profit for the September quarter of 2024-25 (Q2FY25) stood at ₹174.13 crore. Notably, the company has posted losses in the past three fiscal years. For the full year 2023-24, the company made a net loss of ₹135.83 crore. In FY 2022-23, its net loss stood at ₹145.86 crore, compared to a net loss of ₹642.99 crore in FY 2021-22.