WeWork India Receives Sebi Approval for Maiden IPO, Embassy Buildcon to Sell Stake

WeWork India Management has received Sebi approval for its maiden IPO, comprising an offer for sale of up to 43.75 million equity shares. Embassy Buildcon, the promoter selling shareholder, will offload up to 33.45 million equity shares, while investor selling shareholder Ariel Way Tenant will sell up to 10.29 million equity shares. The company, which provides flexible workspaces, reported revenue from operations of ₹918.1 crore and net profit of ₹173.6 crore in H1 FY25.

WeWork India Management has received approval from the Securities and Exchange Board of India (SEBI) to launch its maiden initial public offering (IPO), marking a significant milestone in the company's growth journey. The IPO involves an offer for sale (OFS) of up to 43.75 million equity shares, with no new shares being issued [1].

The OFS includes up to 33.45 million equity shares offered by Embassy Buildcon LLP, the promoter selling shareholder, and up to 10.29 million equity shares by 1 Ariel Way Tenant Limited, an investor selling shareholder. The company will list on the stock exchanges to achieve the benefits of a public listing [1].

WeWork India Management, a premium flexible workspace operator in India, reported revenue from operations of ₹918.1 crore and a net profit of ₹173.6 crore for the half-year period ended September 30, 2024 [2]. The company has been the largest operator by total revenue in the premium flexible workspace segment in India for the past three fiscal years [3].

The company's strong brand, world-class infrastructure, and association with the WeWork global network have helped it establish long-term relationships with global enterprises such as Amazon Web Services, JP Morgan, Warner Bros. Discovery, Deutsche Telekom, and Grant Thornton [3]. WeWork India operates under an exclusive licensing agreement with the global WeWork brand and is majority-owned by Embassy Group, one of India’s most prominent real estate developers [3].

The IPO is being managed by a consortium of leading investment banks, including JM Financial Limited, ICICI Securities Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, and 360 ONE WAM Limited [3].

References:
[1] https://www.cnbctv18.com/market/wework-india-gets-sebi-nod-for-ipo-embassy-group-to-offload-stake-via-ofs-19637334.htm
[2] https://www.business-standard.com/markets/news/wework-india-gets-sebi-nod-for-ipo-embassy-buildcon-to-sell-stake-125071500491_1.html
[3] https://m.economictimes.com/industry/services/property-/-cstruction/wework-india-gets-sebi-nod-for-ipo-set-to-launch-offer-for-sale/articleshow/122490202.cms