WeWork India shares settled 2 percent lower from the issue price on the NSE at Rs 632 per share on the debut day.
The stock had made a flat stock market debut on the stock exchanges on October 10. The Rs 3,000-crore IPO of the co-working space operator sailed through on the last day of the bidding, getting 1.15 times subscription, mainly led by institutional buyers between October 3-7.
Shares of WeWork India Management Ltd were listed at Rs 650 per share on the NSE, a premium of 0.31 percent. The issue had a price band of Rs 615-648 per share.
On the BSE, the shares were listed at Rs 646.50 per share, a discount of 0.23 percent. The company's market capitalization post listing of shares stood at Rs 8,664.60-crore.
Earlier, the company collected a little over Rs 1,348 crore from anchor investors.
WeWork India share listing: Should you buy, sell or hold?
Akhilesh Desai, Research Analyst at Ajcon Global Services, recommended that investors should remain cautious post listing.
"Short-term traders may book profits quickly if any premium arises as gains, if any, are likely to be sentiment-driven rather than fundamental; medium- to long-term investors should avoid fresh buying and adopt a wait-and-watch approach given governance concerns, pledged promoter shares, brand dependency on WeWork Global, and lack of growth capital; while IPO allottees may consider a partial exit to manage risk exposure since proceeds go entirely to promoters and the company’s operational turnaround remains uncertain, he said.
"The WeWork India IPO primarily benefits promoters and, given the governance issues, high leverage, and brand dependence, investors should stay cautious and consider entering only after consistent improvements in financial performance and governance are visible post listing," Desai added.
WeWork India stated that the objective of the offer is to achieve the benefits of listing its equity shares on the stock exchanges. The company expects the listing to enhance visibility, provide liquidity to existing shareholders, and establish a public market for its stock in India.
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.
At present, WeWork India operates across Tier-1 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai, managing 77 lakh sq ft of space, of which 70 lakh sq ft is operational, with a desk capacity of 1.03 lakh. The firm employs over 500 people.
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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