WeWork India raises ₹1,348 crore via anchor book; IPO to open on Oct 3

Embassy Buildcon-backed WeWork India Management has raised ₹1,348.26 crore from anchor investors on October 1, ahead of the opening of the initial public offering (IPO) on October 3. The Bengaluru-based premium flexible workspace operator looks to raise ₹3,000 crore via the IPO, which is entirely an offer-for-sale (OFS) of 4.6 crore equity shares. The price band for the offer has been fixed at ₹615–648 per share, valuing the company at around ₹8,685 crore.

As per the exchange data, WeWork India allotted 2.08 crore equity shares to 67 anchor investors at the upper end of the price band of ₹648 per share. Foreign investors such as Goldman Sachs, BNP Paribas Financial Markets, Ashoka Whiteoak, Amundi Funds, Allianz Global, Integrated Core Strategies, and Societe Generale participated in the anchor book.

From the domestic market, institutional investors such as ICICI Prudential Mutual Fund, HDFC AMC, WhiteOak Capital, 360 ONE, Motilal Oswal AMC, HDFC Life Insurance, Aditya Birla Sun Life AMC, Axis Mutual Fund, Invesco India, Mirae Asset, Tata Mutual Fund, Tata AIG General Insurance, SBI General Insurance, Nuvama, Edelweiss, Canara HSBC Life Insurance, Bank of India MF, Kotak Mahindra Life Insurance, and JM Financial also invested in the company through the anchor book.

Out of the total allocation, 96.79 lakh shares worth ₹627.21 crore were allocated to 13 domestic mutual funds, which applied through their 32 schemes, the exchange data showed.

The three-day IPO will close on October 7, while the company will finalise IPO share allotment by October 8. The tentative date for the listing of WeWork India shares on the BSE and NSE is October 10.

Since the issue is completely an OFS, no capital will flow into the company. Under the OFS, the company’s promoter, Embassy Buildcon LLP, will offload some stake, while investor Ariel Way Tenant will also sell its stake. Currently, Embassy Buildcon holds 10.2 crore, or 76.21%, stake in the company, while Ariel Way Tenant owns 3.14 crore, or 23.45%, shares.

In an exclusive interaction with Fortune India, WeWork India MD and CEO Karan Virwani said that there is no fresh issue component as the company is already self-sustaining, generating sufficient cash to fund both operations and expansion.

“Over the last eight years, we’ve fully invested in our infrastructure. In January, we infused capital to pay down debt. The business is now generating enough cash to support operations and growth,” he said. According to him, the IPO aims to facilitate future growth plans while leveraging the company’s existing investments.

Established in May 2016, WeWork India Management provides a comprehensive array of flexible workspace solutions, catering to large enterprises, small businesses, startups, and professionals. It benefits from its affiliation with WeWork Global, which operates in 35 countries with around 600 locations. As of September 30, 2024, the company had 94,440 desks across 59 operational centres, spanning a total leasable area of 6.48 million square feet.