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WeWork India has filed its draft red herring prospectus (DRHP) with the capital markets regulator Sebi to raise funds through an initial public offering
The IPO will only comprise an offer-for-sale of up to 4.3 Cr (43,753,952) equity shares with a face value of INR 10 each
The book-running lead managers for the public issue are JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM
Coworking major WeWork India has filed its draft red herring prospectus (DRHP) with the capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The IPO will only comprise an offer-for-sale of up to 4.3 Cr (43,753,952) equity shares with a face value of INR 10 each. Out of these, promoter group Embassy Buildcon LLP will sell 3.34 Cr shares, while one of its investors, Ariel Way Tenant, will offload 1.02 Cr shares.
“The proceeds from the OFS will be transferred to each of the selling shareholders in proportion to the respective portion of the offered shares transferred by each of them in the offer-for-sale (after deducting applicable offer-related expenses and taxes) and will not result in any creation of value for us or in respect of your investment in our company,” it said in the draft IPO papers.
The book-running lead managers for the public issue are JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM.
The company is not planning a pre-IPO placement before the listing in bourses.
WeWork India Management was formed in 2016. It is primarily owned by Embassy Buildcon LLP, which holds 73.82% of the shares as of the date of filing DRHP (January 31). The remaining shares are held by public shareholders, including 1 Ariel Way Tenant Limited, which owns 22.72%.
The total shares held by Embassy Buildcon was 10.21 Cr while Ariel Way Tenant Limited owns 3.14 Cr shares in WeWork India.
Meanwhile, WeWork, which has been undergoing insolvency proceedings for some time now, has been looking to sell its entire stake in the joint venture. According to reports, its plan to sell its entire stake in the entity to Real Trustee Advisory Company collapsed in September due to a valuation mismatch. The said transaction was approved by the Competition Commission of India (CCI) in June.
Last week, WeWork India disclosed its FY24 numbers in which it managed to trim its loss by 7.5% to INR 135.77 Cr in the fiscal year 2023-24 (FY24) from INR 146.81 Cr in the previous year. Its top line also reported a 26.7% uptick in revenue from operations to INR 1,665.14 Cr from INR 1,314.52 Cr in FY24.
The company in its DRHP filing also disclosed its financial performance for the six months ending September 30, 2024. It reported a net loss of INR 174.5 Cr for the period under consideration while operating revenue for the period is also at INR 918.1 Cr.
Last month, credit rating agency ICRA revised its rating for WeWork India to A- from BBB, citing the expectation that the company’s revenue will grow by 20-25% in the near term due to new desk capacities at healthy occupancy levels.
Another key factor for ICRA’s upgrade was the recent INR 500 Cr raised by the company via a rights issue. The capital infusion is expected to lead to a “substantial” improvement in its leverage and coverage metrics.
