WeWork India gets SEBI approval for IPO; Embassy Group to offload stake via OFS

WeWork India gets SEBI approval for IPO.

WeWork India Management Ltd has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), which will be a complete offer for sale (OFS) of up to 4.37 crore equity shares, as per the draft red herring prospectus (DRHP).

The OFS will comprise 3.3 crore shares held by Embassy Buildcon Pvt Ltd and 1.03 crore shares held by 1 Ariel Way Tenant LLP. The company will not issue any fresh shares in the offer.

WeWork India, the exclusive licensee of the global WeWork brand in the country, had filed its draft IPO papers in February this year. The company is the India franchisee of the US-based shared workspace provider.

The IPO, which was earlier placed under abeyance by SEBI in March, was cleared last week after the regulator lifted the temporary suspension.

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Bengaluru-based real estate group Embassy, promoted by Jitu Virwani and his son Karan Virwani, is the majority owner of WeWork India. Karan Virwani is also the Chief Executive Officer of the company.

As of September 30, 2024, WeWork India had a portfolio of 94,440 desks across 59 operational centres with a total leaseable area of 6.48 million square feet.

The company counts Amazon Web Services, JP Morgan, Warner Bros. Discovery, Deutsche Telekom, and Grant Thornton among its marquee clients. According to the DRHP, WeWork India’s association with the global brand and backing from Embassy Group has helped attract long-term tenants.

Embassy Group has developed over 85 million square feet of commercial real estate and sponsors Embassy Office Parks REIT, India’s first REIT and Asia’s largest office REIT by leasable area, as per CBRE data.

JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital, and 360 ONE WAM are the book-running lead managers to the issue.

The shares will be listed on the BSE and NSE.