WeWork India's IPO commenced on October 3, 2025, and enters its second day today, October 6, 2025. The IPO aims to raise ₹3,000 crore through an offer for sale (OFS). Here's a breakdown of the key details to help investors make informed decisions.
Subscription Status:
On Day 1, the IPO was subscribed a modest 4%. Retail investors subscribed to 14% of the shares allocated to them. Demand from Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) stood at 2% each. The employee category saw stronger interest, with 90% subscription.
Grey Market Premium (GMP):
The Grey Market Premium (GMP) is an unofficial indicator of how a stock might perform on listing day. However, it is highly volatile and should not be the sole basis for investment decisions. The GMP for WeWork India has decreased to ₹5, a premium of just 0.77% above the issue price. This is down from an earlier premium of ₹15, or 2.32%.
Key IPO Details:
- IPO Date: October 3 to October 7, 2025.
- Listing Date: Tentatively October 10, 2025.
- Price Band: ₹615 to ₹648 per share.
- Total Issue Size: ₹3,000 crore.
- Offer for Sale (OFS): The IPO consists entirely of an offer for sale of 4.63 crore shares. The company will not receive any proceeds from the IPO.
- Face Value: ₹10 per share.
- Lot Size: 23 Shares.
- Minimum Investment: ₹14,904.
- Allotment Date: Expected to be finalized on October 8, 2025.
- Listing: BSE and NSE.
- Registrar: MUFG Intime India Pvt. Ltd.
Purpose of the IPO:
The IPO is an Offer For Sale (OFS), meaning that the raised capital will go to the selling shareholders and not to WeWork India. Embassy Buildcon LLP, the promoter, is selling 3.54 crore shares, expecting to cash out ₹2,294 crore. WeWork Global is also selling shares.
WeWork India: Business Overview
WeWork India is a flexible workspace provider with 68 centers across 8 Indian cities, offering over 114,000 desks. They lease Grade A office spaces, outfit them, and then sublease the space to clients. Clients range from large corporations to startups and freelancers. Revenue streams include private offices, managed offices and ancillary services.
Financial Performance:
WeWork India has shown revenue growth, increasing from ₹1,423 crore in FY23 to ₹2,024 crore in FY25. The company has also turned profitable, with a profit of ₹128 crore in FY25, compared to a loss of ₹136 crore in FY24. However, it is important to note that the FY25 profit was aided by a deferred tax credit of ₹286 crore. Occupancy rates have seen a slight decline, from 83.8% in FY23 to 76.5% as of June 2025.
Strengths:
- Market Leader: WeWork India is the largest premium flexible workspace provider in India by revenue.
- Strong Profitability at Center Level: Mature workspaces (12+ months old) generate operating margins of 40%+.
- Early Breakeven: New centers become profitable at around 56% occupancy.
- High Realization Per Seat: WeWork India has an industry-leading realization of approximately ₹19,800 per month per seat.
Risks:
- OFS: The IPO proceeds will not go to the company.
- Occupancy Drop: Occupancy rates have declined.
- Inconsistent Profits: While FY25 showed a profit, FY23 and FY24 had losses.
- Geographic Concentration: A significant portion of revenue comes from Bengaluru and Mumbai.
- Brand License: WeWork India licenses the WeWork brand.
- Competition: The co-working space market is crowded.
Valuation:
The IPO is valued at a market cap of approximately ₹9,000 crore. The P/E ratio is 65.6x FY25 earnings. Some analysts believe the IPO is fully priced.
Analyst Recommendations:
Brokerage firm Anand Rathi has given a "subscribe for long-term" tag, while SMC Global has given a "neutral" tag. Arihant Capital recommends "Subscribe for listing gain".
Should You Invest?
Investing in an IPO involves risk. Consider these points before investing in the WeWork India IPO:
- The company operates in a competitive market.
- A significant portion of revenue is concentrated in two cities.
- The IPO is entirely an offer for sale.
- Valuation appears fully priced.
Investors should conduct thorough due diligence, consider their risk tolerance, and consult with a financial advisor before making any investment decisions.
