WeWork India gets SEBI approval for IPO, to raise funds via offer for sale

The initial share sale will exclusively be an offer-for-sale (OFS) of 43,753,952 equity shares. Under the OFS, promoter selling shareholder Embassy Buildcon LLP will offload 33,458,659 shares, and investor selling shareholder 1 Ariel Way Tenant Ltd will sell 10,295,293 shares.

As the issue is solely an OFS, the company will not get any proceeds from the IPO.

In its DRHP, WeWork said it expects that "listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders. Listing will also provide a public market for the equity shares in India."

The market regulator issued its observation on July 8. In SEBI's parlance, observation means SEBI's go-ahead to launch a public offer.

JM Financial, Jefferies India Pvt Ltd, Kotak Mahindra Capital Company, ICICI Securities, and 360 One WAM Ltd are the issue's book-running lead managers, while MUFG Intime India is the registrar.

About WeWork India

WeWork India, launched in 2017, is a leading premium flexible workspace operator in India. It has played a key part in the growth of the flexible workspace sector in India. It provides workspace solutions to firms of all sizes, ranging from large enterprises to small and midsize businesses, startups and individuals.

In its DRHP, the company said it has developed long-term relationships with global marquee brands like JP Morgan Services India Pvt Ltd, Amazon Web Services India Pvt Ltd, Discovery Communications India, CBA Services Pvt Ltd, Deutsche Telekom Digital Labs Pvt Ltd, and Grant Thornton Bharat LLP.

As of September 2024, its portfolio comprised more than 94,000 desks across 59 operational centres.