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What is the story about?
The ₹3,000 crore WeWork India IPO opens for subscription on Friday, October 3. The issue will be a pure Offer For Sale (OFS), which means that the Indian entity will not receive any proceeds from the issue.
The company's promoter Embassy Buildcon LLP will be selling shares in the IPO, along with an existing investor Ariel Way Tenant Ltd., a unit of WeWork International.
WeWork India launched in 2017 as a flexible workspace operator. The company now has 68 operational centres across the country, with a capacity of 1.14 lakh desks across eight cities. Bengaluru (46.1%) and Mumbai (23.93%), account for nearly 70% of the overall capacity.
For the first quarter of financial year 2026, the company's revenue grew by 19.3% from last year to ₹535.3 crore, while net loss narrowed to ₹14.1 crore from ₹29.1 crore last year.
Its adjusted EBITDA margin also narrowed to 18% from 21.7% last year.
The three-day issue will close for subscription on Tuesday, October 7. Retail investors can bid for one lot of 23 shares, which will entail a minimum investment of ₹14,904 per lot.
Investors can then bid in multiples of 23 shares thereafter.
The allotment will be finalised on October 8 and the shares are likely to list on the National Stock Exchange and Bombay Stock Exchange on October 10.
Angel One is neutral on the IPO, stating that at the upper end of the price band, the company's post-issue price-to-earnings multiple stands at 67.7 times, which indicates a premium valuation.
"While the company is profitable and operates in a growing flexible workspace sector, high fixed costs, revenue concentration, and market risks make returns uncertain leading to a “Neutral” recommendation," the firm wrote in its note.
SBI Securities wrote in its note that the company benefits from its relationship from its global parent, but at the upper end of the price band, it is valued at a financial year 2025 price-to-earnings multiple of 50.1 times, based on the post-issue capital, which is fair. Therefore, they have a
"neutral" rating on the issue and would like to monitor the post-listing performance in greater detail before taking a fresh call.
On the flip side, Canara Bank Securities has a "subscribe" rating to the issue, backed by the company's strong brand recognition, market leadership, and its relationship with the global parent. However, geographic concentration risk, proceedings against the promoters by enforcement agencies and group company receiving SEBI show cause notices are some key risk factors.
Reports from the unlisted market are currently indicating a grey market premium (GMP) of ₹15 per share for WeWork India. It must be noted that these are speculative rates and the actual listing could be very different from the GMP.
The company's promoter Embassy Buildcon LLP will be selling shares in the IPO, along with an existing investor Ariel Way Tenant Ltd., a unit of WeWork International.
About WeWork
WeWork India launched in 2017 as a flexible workspace operator. The company now has 68 operational centres across the country, with a capacity of 1.14 lakh desks across eight cities. Bengaluru (46.1%) and Mumbai (23.93%), account for nearly 70% of the overall capacity.
Financials
For the first quarter of financial year 2026, the company's revenue grew by 19.3% from last year to ₹535.3 crore, while net loss narrowed to ₹14.1 crore from ₹29.1 crore last year.
Its adjusted EBITDA margin also narrowed to 18% from 21.7% last year.
IPO Details
The three-day issue will close for subscription on Tuesday, October 7. Retail investors can bid for one lot of 23 shares, which will entail a minimum investment of ₹14,904 per lot.
Investors can then bid in multiples of 23 shares thereafter.
The allotment will be finalised on October 8 and the shares are likely to list on the National Stock Exchange and Bombay Stock Exchange on October 10.
Should You Subscribe?
Angel One is neutral on the IPO, stating that at the upper end of the price band, the company's post-issue price-to-earnings multiple stands at 67.7 times, which indicates a premium valuation.
"While the company is profitable and operates in a growing flexible workspace sector, high fixed costs, revenue concentration, and market risks make returns uncertain leading to a “Neutral” recommendation," the firm wrote in its note.
SBI Securities wrote in its note that the company benefits from its relationship from its global parent, but at the upper end of the price band, it is valued at a financial year 2025 price-to-earnings multiple of 50.1 times, based on the post-issue capital, which is fair. Therefore, they have a
On the flip side, Canara Bank Securities has a "subscribe" rating to the issue, backed by the company's strong brand recognition, market leadership, and its relationship with the global parent. However, geographic concentration risk, proceedings against the promoters by enforcement agencies and group company receiving SEBI show cause notices are some key risk factors.
What Does The GMP Indicate?
Reports from the unlisted market are currently indicating a grey market premium (GMP) of ₹15 per share for WeWork India. It must be noted that these are speculative rates and the actual listing could be very different from the GMP.
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