WeWork India, the co-working space operator with exclusive rights to the WeWork brand in the country, opens its much-anticipated initial public offering (IPO) for public subscription today, October 3.
Ahead of the launch, the company raised over Rs 1,348 crore from anchor investors, a strong show of confidence from both domestic and global funds.
The IPO, valued at around Rs 8,685 crore at the upper end of the price band, is priced between Rs 615 and Rs 648 per share. The issue, worth Rs 3,000 crore, is entirely an Offer for Sale (OFS), meaning WeWork India will not directly receive proceeds.
Instead, promoter Embassy Buildcon LLP and global investor 1 Ariel Way Tenant Ltd, a part of WeWork Global, will offload their stakes.
WeWork India GMP
The concept of the grey market plays a vital role in IPO analysis. A grey market, also known as a parallel market, operates unofficially, where shares or IPO applications are traded before their official listing on stock exchanges. Such trades are conducted privately, usually in cash, without oversight from SEBI or stock exchanges.
GMP, or grey market premium, reflects the extra price investors are willing to pay for IPO shares ahead of listing. A higher GMP suggests strong demand and expectations of a robust listing, while a low GMP may signal lukewarm interest.
However, despite the anchor book’s success, the grey market premium (GMP) remains subdued at around 2.31 per cent, reflecting cautious investor sentiment.
For WeWork India, the modest GMP suggests that while investors are watching the issue closely, broader sentiment remains guarded.
Strong Backing from Anchor Investors
According to BSE data, 2.08 crore shares were allotted to 67 institutional investors at Rs 648 apiece, translating to Rs 1,348.26 crore in anchor investments. Participation came from heavyweight domestic mutual funds such as ICICI Prudential MF, HDFC MF, Axis MF, Aditya Birla Sun Life MF, Motilal Oswal MF, and Canara Robeco MF. Insurance majors, including SBI General Insurance, Bajaj Allianz Life, Kotak Mahindra Life, and Canara HSBC Life, also contributed.
On the global side, investment giants like Goldman Sachs Fund, Allianz Global Investors, and Al Mehwar Commercial Investments LLC (Wanda) strengthened the anchor book, underlining confidence in the company’s long-term growth story.
IPO Details and Market Structure
The IPO, open between October 3 and October 7, reserves 75 per cent of its shares for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, and 10 per cent for retail participants. The minimum bid is set at 23 shares, with multiples thereafter. Listing on the bourses is expected by October 10.
Currently, Embassy Group owns 76.21 per cent of WeWork India, while WeWork Global holds 23.45 per cent. Proceeds from the share sale will go entirely to these selling shareholders.
For the company, the listing is seen as a step towards enhancing market visibility, providing liquidity to existing stakeholders, and widening its investor base.
Company Profile and Expansion Plans
Founded in 2017, WeWork India has established itself as one of the country’s largest flexible workspace providers. Operating across key Tier-1 cities such as Bengaluru, Mumbai, Delhi, Chennai, Hyderabad, Pune, Gurugram and Noida, the company manages 77 lakh square feet of workspace, of which 70 lakh square feet is already operational.
With a seating capacity of 1.03 lakh desks and over 500 employees, the company has carved a strong presence in the market.
The firm has previously raised significant funding, including a $100 million investment from WeWork Global in 2021 and Rs 500 crore through a rights issue in early 2024. These capital infusions have supported expansion and debt reduction. The IPO marks the next phase in its growth strategy, positioning WeWork India to consolidate its leadership in the flexible office space market.
