The Rs 3,000-crore initial public offering (IPO) of Co-working space operator WeWork India will open shortly for public subscription in the primary market. The initial share sale of the India unit of U.S.-based shared office space provider is majority-owned by Embassy Group.
The IPO comes at a time when coworking spaces are experiencing a strong revival, driven by companies embracing hybrid work models after years of remote work.
Here are key things you need to know ahead of share sale beginning at 10 a.m. today
1) Anchor investors: The company collected Rs 1,348 crore from anchor investors, including ICICI Prudential Mutual Fund, HDFC MF, Motilal Oswal MF, Aditya Birla Sun Life MF, Axis MF, Canara-Robeco MF as well as insurance firms such as, Canara HSBC Life Insurance, SBI General Insurance and Kotak Mahindra Life Insurance and Bajaj Allianz Life Insurance. Global interest was equally notable with strong demand from Goldman Sachs Fund, Al Mehwar Commercial Investments LLC - (Wanda) and Allianz Global Investors, according to a circular uploaded on BSE's website late night on Wednesday.
2) Issue size: The issue size has been fixed at Rs 3,000-crore.
3) Price band: The price band has been fixed at Rs 615 to Rs 648 per share.
4) Subscription dates: The issue will open for public subscription between October 3 and October 7.
5) Issue details: The IPO, entirely an Offer for Sale (OFS) of up to 4.63 crore equity shares, will see promoter group entity Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) divest their stakes. The proposed IPO is worth Rs 3,000 crore at the upper end.
6) Objective of the issue: The company expects the listing to enhance visibility, provide liquidity to existing shareholders, and establish a public market for its stock in India.
7) About the company: Founded in 2017, WeWork India operates under an exclusive licence of the WeWork brand in India, promoted by Bengaluru-based real estate developer Embassy Group.
8) IPO GMP: According to platforms tracking the grey market activities, the shares of WeWork India are commanding a GMP of over 2 percent in the unregulated market. Investrogain quoted a GMP of Rs 15 for the shares of the company, indicating a listing gain of 2.31 percent.
9) Allotment and listing details: WeWork India IPO share allotment is expected by October 8, while share listing is scheduled to take place on October 10.
10) Should you subscribe?
The analysts at SBI Securities, recommended a 'Neutral' rating to the issue. The analysts noted the key highlights, saying it is majority owned and promoted by Embassy Group, a leading real estate developer in India with a focus on Tier-1 cities and Grade A properties and diverse member base.
The company continues to deepen presence in existing cities and expand in key micro-markets, while investing in new products and technology to diversify revenues through product innovation and inorganic expansion.
The report also highlighted key risks, including restructuring of WeWork International, ongoing proceedings against promoter, dependency on WeWork International among others.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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