WeWork India IPO Day 1 GMP Live: Slow start for WeWork India's Rs 3,000 cr public offer - Check risks, GMP trends before applying

Tata Investment Corporation shares surged 12 percent to a record high on Friday, extending their winning streak for the fifth straight session, ahead of the opening of Tata Capital’s initial public offering (IPO) next week. The stock climbed 11.98 percent to touch an intraday peak of Rs 11,847 apiece on the NSE. It has gained nearly 35 percent since September 26, when Tata Capital fixed the IPO date. However, shares pared the early gains to trade lower at Rs 10,075 per share on the NSE, down 4.77 percent.

Qualified Institutional Buyers (QIBs) -- 0.00

Non Institutional Investors(NIIS) -- 0.01

Retail Individual Investors (RIIs) -- 0.10

Employee Reserved - 0.60

Total - 0.02

The initial share sale of Advance Agrolife Ltd got 6.5 times subscription on the third day of bidding on October 3. The company's Rs 193-crore IPO received bids for 8,80,10,850 shares against 1,35,09,004 shares on offer, implying 187% subscription so far, according to NSE data. The component meant for qualified institutional buyers got 3.5 times subscription while the portion for retail individual investors received 451% subscription. The quota for non-institutional investors got subscribed 15.1 times. (Read More)

The last grey market premium (GMP) for WeWork India’s IPO was Rs 15. With a price band of Rs 648, the estimated listing price is around Rs 663 (cap price plus today’s GMP), implying an expected gain of 2.31% per share.

WeWork India's revenues are heavily linked to the commercial real estate market. Slowdowns in office space demand, fluctuations in lease rates, or weaker economic growth can lead to lower occupancy levels. This reliance on broader real estate cycles introduces inherent volatility, as market downturns can directly impact the company's revenues and margins.

India's flexible workspace sector comprises nearly 500 operators, offering solutions such as shared desks, private offices, managed spaces, and pay-per-use options, according to CBRE. As more players expand, the risk of market saturation increases, exerting downward pressure on pricing. Heightened competition could make it challenging for WeWork India to retain key clients, particularly large enterprises and MNCs that often negotiate aggressively on costs.

WeWork India holds an A- (Stable) credit rating from ICRA, upgraded from BBB in 2024. While the rating reflects improvement, the company notes that any future downgrade could restrict access to affordable financing. Given its capital-intensive model and recurring lease commitments, maintaining a strong credit profile is essential for operational flexibility.

The company has reported net losses and negative earnings per share in FY23, FY24, and Q1 FY25. Over the same period, cash reserves have declined, reflecting stress on working capital. Without scaling revenues while managing costs effectively, losses could widen, raising concerns about the company's long-term sustainability.

WeWork India operates on an asset-light leasing model rather than property ownership. As of June 30, 2025, it was tied to long-term, fixed-cost agreements covering 7.35 million sq. ft. across 60 centres. These obligations result in sizable fixed expenses, which can pressure the company if occupancy drops, revenues weaken, or lease renewals are denied. In addition, unforeseen issues such as property disputes or damages could directly weigh on profitability.

Part of the promoters' equity stake has been pledged as collateral against borrowings. In the event of repayment defaults, lenders may invoke these pledges, leading to a decline in promoter shareholding. Such a reduction in ownership typically carries negative market implications and could trigger heightened volatility in the company's stock after listing.

Group firm Embassy Office Parks Management Services Pvt Ltd has been issued a show-cause notice under the SEBI Act, 1992. Although WeWork India is not directly implicated, regulatory action against a related entity could indirectly weigh on investor sentiment and heighten compliance-related concerns.

In 2014, the Enforcement Directorate (ED) launched proceedings under the Prevention of Money Laundering Act, 2002 against Jitendra Mohandas Virwani, the promoter and chairman of WeWork India. The case remains pending, and any adverse ruling could damage the company's reputation, trigger greater regulatory scrutiny, and undermine investor confidence. Such developments may also pose risks to its operations and access to financing.

WeWork India operates 68 centres across eight cities in the country, covering around 7.35 million sq. ft. of workspace under long-term, fixed-cost lease agreements. According to CBRE, the company faces competition from nearly 500 flexible workspace operators in India. At present, its only listed peer in the market is Awfis Space Solutions.

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The basis of share allotment for WeWork India's IPO is likely to be completed on October 8, 2025, with the company's shares expected to debut on the BSE and NSE on October 10, 2025. Once listed, WeWork India will become one of the rare publicly traded players in India's fast-expanding flexible workspace industry, alongside Awfis Space Solutions.

The issue is being managed by JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital, and 360 ONE WAM, while MUFG Intime India is acting as the registrar.

The IPO has been priced in the range of Rs 615 to Rs 648 per share, with a minimum bid lot of 23 shares.

Embassy Buildcon LLP (Promoter): Will sell 3.54 crore shares

Ariel Way Tenant Ltd (WeWork International): Will offload 1.089 crore shares

Currently, Embassy Buildcon holds a 73.56% stake, while WeWork International owns 22.64% in the company.

The IPO is valued at Rs 3,000 crore and is entirely an offer for sale (OFS) of 4.63 crore equity shares. No fresh shares are being issued, so the company will not receive any proceeds from the offer.

Good morning and welcome to Moneycontrol. Today, we are covering the day 1 buzz around Rs 3,000 crore public offer by WeWork India Management. The initial public offering (IPO) opens for subscription today, Friday, October 3, 2025, and will remain open until Tuesday, October 7, 2025.