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By Nitin Negandhi
Wework India Ltd.
WeWork India Management Ltd., promoted by Bengaluru-based Embassy Group in 2017, is coming out with an Offer for Sale (OFS) of about 4.63 crore shares at an upper price band of Rs.648 per share, aggregating to Rs.3,000 crore. The objective of the OFS is to provide an exit or partial exit to existing shareholders. However, a significant portion of promoter shares are pledged as security for borrowings, posing a risk as enforcement of these pledges could reduce promoter holding further and negatively impact market valuation.
| Name of the Company | WeWork India Management | |
| Issue Open | 03-10-2025 | |
| Issue closes | 07-10-2025 | |
| Issue Size | ||
| Offer for sale | Rs. in Crore | 3,000 |
| Face Value per share | Rs. | 10 |
| Upper issue price band | Rs. | 648 |
The company provides flexible workspaces to enterprises, startups, and professionals across major Indian cities including Mumbai, Delhi, and Bengaluru. It is the exclusive licensee of WeWork Global in India. Financially, the company turned profitable in FY25, reporting a net profit of Rs.128 crore against a loss of Rs.136 crore in the previous year. Since March 2023, it has recorded a revenue CAGR of 24%. For the three months ended, losses narrowed from Rs.29.1 crore to Rs.14.1 crore. The company operates 68 centres with a total desk capacity of 1,14,000. With a break-even utilisation point at 54%, the current utilisation of 76.5% supports profitability at the net level.
| Financials for the period / year ended | Jun-25 | Sep-24 | Mar-25 | Mar-24 | Mar-23 | CAGR (%) | |
| No of months | 3 | 3 | 12 | 12 | 12 | ||
| Income from operations | Rs. in cr | 535 | 448 | 2024 | 1800 | 1315 | 24.1% |
| Net Profit/ (-) Loss | Rs. in cr | -(14.1) | -(29.1) | 128 | -(136) | -(146) | |
| EPS | Rs. | 9.6 | -(10.1) | -(10.9) | |||
| EBITDA Margin | % | 63.5% | 62.9% | 60.5% | |||
Peer Comparison:
Among recently listed peers, Dev Accelerator trades at Rs.51 (IPO price Rs.61) and Indiqube at Rs.234 (IPO price Rs.237). SmartWorks, however, is quoting higher at Rs.567 against its IPO price of Rs.407.
| WeWork India | Awfis Space Solutions | Smartworks Coworking | IndiQube Spaces | |
| Occupancy Rate | 76.4% | 73% | 83% | 85% |
| Revenue – FY25 | Rs 2,024 crore | Rs. 1,206 cr. | Rs. 1,496 cr. | Rs. 1,102 cr. |
| Revenue Growth | 26% | 44% | 26% | 44% |
| EBITDA (FY25) | Rs.1,235 cr. | Rs.402 cr. | Rs. 852 cr. | Rs.616 cr. |
| Net Profit FY 25 | Rs 128 cr. | Rs. 67 cr. | Rs. 63 cr. loss | Rs. 139 cr. |
Conclusion:
WeWork Global, which invested USD 100 million for a 27% stake in WeWork India, filed for bankruptcy in the USA and Canada after its failed IPO attempt in 2019 and subsequent Covid-19 disruptions. Once valued at nearly USD 50 billion, the global company has since exited its stake in the Indian arm. WeWork India continues to pay a licensing fee for the use of the global brand name.
The issue is valued at an FY25 P/E multiple of 50x. While the IPO has attracted institutional investors, retail participation was only 15% on the first day. The Grey Market Premium (GMP), which initially indicated a listing gain of Rs.15, is currently showing a small discount to the issue price, reflecting risk factors.
Given the background of promoter pledges, global brand uncertainties, and current valuations, investors may adopt a cautious “wait and watch” approach to evaluate how WeWork India leverages the growing demand for flexible workspaces in India.
Disclaimer:
The writer is not a SEBI registered analyst. He and his friends and relatives may or may not participate in the IPO. Investors should consult their financial advisor before investing. Grey market premium is just an indicator and should not be relied upon.
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