WeWork India sets price band at Rs 615-648/ share for Rs 3,000 crore-IPO

New Delhi: Co-working space operator WeWork India on Monday announced a price band of Rs 615 to Rs 648 per share for its upcoming Rs 3,000 crore initial public offering (IPO).

At the upper end, the company is valued at around Rs 8,685 crore.

The issue will open for public subscription on October 3 and close on October 7, while bidding for anchor investors will take place on October 1, according to the company's public announcement.

The IPO, which is entirely an Offer-for-Sale (OFS) of up to 4.63 crore equity shares, will see the promoter group entity, Embassy Buildcon LLP, and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) divest their stakes.

The proposed IPO is worth Rs 3,000 crore at the upper end.

Currently, the Embassy Group holds about 76.21 per cent in WeWork India, while WeWork Global owns 23.45 per cent.

Since the issue is an OFS, WeWork India will not receive any proceeds from the issue and the funds will go entirely to the selling shareholders.

In its draft papers, WeWork India stated that the objective of the offer is to achieve the benefits of listing its equity shares on the stock exchanges. The company expects the listing to enhance visibility, provide liquidity to existing shareholders, and establish a public market for its stock in India.

Founded in 2017, WeWork India operates under an exclusive license of the WeWork brand in India, promoted by Bengaluru-based real estate developer Embassy Group.

The company aims to leverage the IPO primarily to achieve listing benefits, enhance visibility, provide liquidity to existing shareholders, and create a public market for its stock.

WeWork Global had invested USD 100 million in 2021, while in January 2024, the company raised Rs 500 crore through a rights issue to reduce debt and support expansion.

At present, WeWork India operates across Tier-1 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai, managing 77 lakh sq. ft. of space, of which 70 lakh sq. ft. is operational, with a desk capacity of 1.03 lakh. The firm employs over 500 people.

According to the company, 75 per cent of the offer size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Investors can place bids for a minimum of 23 shares and in multiples thereafter.

With the IPO scheduled in early October, WeWork India is expected to debut on the stock exchanges on October 10.