WeWork IPO receives 4 pc subscription on Day 1

New Delhi, Oct 3 (PTI) The initial public offering (IPO) of co-working space operator WeWork India Management Ltd received 4 per cent subscription on the first day of share sale on Friday.

The IPO received bids for 11,10,440 shares against 2,54,89,748 shares on offer, as per NSE data.

The quota for retail individual investors (RIIs) got subscribed 14 per cent, while the categories for qualified institutional buyers and non-institutional investors received 2 per cent subscription each.

WeWork India has collected a little over Rs 1,348 crore from anchor investors.

The company's Rs 3,000-crore issue will conclude on October 7. The price band has been fixed at Rs 615-648 per share, valuing the company around Rs 8,685 crore at the upper end.

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

Currently, 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 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 licence of the WeWork brand in India, promoted by Bengaluru-based real estate developer Embassy Group.

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. PTI SUM TRB