Embassy Group-promoted WeWork files IPO papers with SEBI, to raise funds via offer for sale

WeWork IPO

Embassy Group-promoted premium flexible workspace operator WeWork India Management has filed draft papers with the capital markets regulator SEBI to raise funds via initial public offering (IPO).

The IPO will comprise of entirely offer-for-sale of 4.37 crore equity shares by existing shareholders, with no fresh issue component. Promoter Embassy Buildcon LLP will be selling 3.34 crore equity shares, and investor 1 Ariel Way Tenant 1.03 crore shares via offer-for-sale.

WeWork India Management is majority owned and promoted by Embassy Group, the real estate developer which has a portfolio of more than 85 million square feet of commercial real estate and is the sponsor of Embassy REIT.

Embassy Buildcon LLP holds 76.21 percent stake in the company, and the remainder shares are owned by public shareholders including 23.45% shares of UK-based 1 Ariel Way Tenant.

JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM are appointed as the merchant banker for WeWork IPO.

Launched in 2017, the Bengaluru-based company, the exclusive licensee of the WeWork brand in India that competes with only listed peer Awfis Space Solutions has been the largest flexible workspace operator by total revenue in the past three fiscals, according to the CBRE report.

WeWork with a portfolio of 94,440 desks across 59 operational centres with total leasable area of 6.48 million square feet operates in India’s key office markets - Bengaluru, Mumbai, Pune, Hyderabad, Gurgaon, Noida, Delhi, and Chennai.

On the financials front, the company posted loss of Rs 135.8 crore in the fiscal 2024, narrowing from loss of Rs 146.8 crore in previous fiscal. During the same period, however, revenue surged by 26.7 percent to Rs 1,665.1 core, against Rs 1,314.5 crore.

Profit in six months period ended September 2024 stood at Rs 174.6 crore on revenue of Rs 918.2 crore.

Meanwhile, another Bengaluru-based managed office space firm IndiQube Spaces, which is backed by WestBridge Capital, had also filed its preliminary papers with SEBI, in December 2024, to raise Rs 850 crore via IPO.