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Time of India
30 minutes ago
- Business
- Time of India
WeWork India gets Sebi nod for Dalal-Street debut
WeWork BENGALURU: WeWork India secured a Sebi nod for its IPO, comprising an offer for sale of up to 43.7 million shares. The listing will not involve any fresh issue of shares, with all proceeds going to existing shareholders. Promoter Embassy Buildcon will offload 33.4 million shares in the proposed offer, while 1 Ariel Way Tenant, associated with the global WeWork group, will sell 10.2 million shares. The company had filed draft papers for the IPO in February. WeWork India is majority-owned by Embassy Group. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hindustan Times
12 hours ago
- Business
- Hindustan Times
WeWork India gets SEBI nod to launch IPO, promoters to sell shares to monetise investments
New Delhi, Jul 15 (PTI) Co-working major WeWork India has received market regulator Sebi's go-ahead to launch its Initial Public Offering (IPO), enabling the promoters to monetise their investments amid record demand for office spaces across the top seven cities. Co-working major WeWork India has received market regulator Sebi's go-ahead to launch its Initial Public Offering (IPO), enabling the promoters to monetise their investments amid record demand for office spaces across the top seven cities. (Picture for representational purposes only)(Pixabay) Bengaluru-based WeWork India Management Ltd, which filed its Draft Red Herring Prospectus (DRHP) in February, obtained observations from the markets regulator on July 8, an update with the SEBI showed on Tuesday. Established in 2017, WeWork India is promoted by Bengaluru-based real estate company Embassy Group. It has the exclusive license of the 'WeWork' brand in India. Also Read: Incuspaze acquires Pune's Trios to expand coworking biz, targets ₹350-400 crore During the 2023-24 fiscal, WeWork India posted a net loss of ₹135.83 crore over a total income of ₹1,737.16 crore. The company, however, posted a profit of ₹174.13 crore in the first six months of the 2024-25 fiscal. Total income stood at ₹960.76 crore during the April-September period of the 2024-25 financial year. In WeWork India, Embassy Group has around 76.21 per cent stake while WeWork Global owns 23.45 per cent. As per the DRHP, the proposed IPO is entirely an Offer for Sale (OFS) of up to 4.37 crore equity shares. Promoter group firm Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) will offload shares. Through the OFS, Embassy Buildcon LLP will sell up to 33,458,659 equity shares, while 1 Ariel Way Tenant Ltd up to 10,295,293 shares. Since it is an OFS, WeWork India will not receive any proceeds from the IPO. On Monday, Smartworks Coworking Spaces Ltd's ₹583 crore IPO was subscribed 13.45 times. Awfis and EFC (I) Ltd are already listed on the stock exchanges. Co-working operators are tapping capital markets to raise funds for expansion amid rising demand for both conventional and flexible managed workspaces. In its draft papers, WeWork India stated that the object of the offer is to achieve the benefits of listing the equity shares on the stock exchanges. "Our company expects that listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders. The listing will also provide a public market for the equity shares in India," WeWork India had said in the DRHP. Also Read: Mumbai real estate: WeWork India leases 1.26 lakh sq ft of commercial space in Powai for ₹1.38 crore monthly rent WeWork Global had in June 2021 invested USD 100 million in WeWork India. In January this year, the company raised ₹500 crore through a rights issue, mainly to reduce debt and achieve further growth. WeWork India provides flexible, high-quality workspaces to customers, which include companies of all sizes as well as individuals. It primarily leases Grade A office space from leading developers across Tier 1 cities and designs, builds, and operates them as flexible workspaces. Its portfolio comprises 77 lakh square feet of area, of which 70 lakh square feet is already operational. The operational desk capacity has reached 1.03 lakh. The company has a presence in Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. It has more than 500 employees.
Time of India
15 hours ago
- Business
- Time of India
WeWork India gets Sebi's nod for ₹1,000 crore IPO
NEW DELHI: WeWork India , a flexible workspace provider, has received approval from Securities and Exchange Board of India (SEBI) to launch its ₹1,000-crore initial public offering (IPO). Bengaluru-headquartered co-working firm, which operates under the global WeWork brand, is promoted by Enam Securities in India. According to the company's draft red herring prospectus (DRHP), the IPO offer includes a fresh issue worth ₹750 crore and an offer for sale (OFS) component of ₹250 crore by Enam. Post-listing, the company will be traded on both BSE and NSE, with a face value of ₹10 per equity share. Proceeds from the fresh issue will be used for capital expansion, debt reduction, and technology investments, among other corporate purposes. Operational momentum with improved financials The company has been on a recovery path, trimming its net losses and boosting topline revenue over the past year. For FY24, it posted a revenue of ₹1,401 crore, up from ₹1,314 crore in the previous fiscal. Net losses narrowed sharply to ₹146 crore, compared to ₹286 crore in FY23. The company's average occupancy has now crossed 75%, translating into over 75,000 seats across major cities such as Bengaluru, Mumbai, Gurugram, and Pune. Its EBITDA, excluding ESOP costs, has turned positive for the first time, offering a strong case for profitability in the near term. On the balance sheet front, the company has managed to reduce its total borrowings to ₹498 crore by March 2024, from ₹637 crore a year earlier. Strategic vision and use of funds Out of the ₹750 crore expected from the fresh issue, the company plans to allocate ₹350 crore toward setting up new centres and upgrading existing ones. Another ₹200 crore is earmarked for debt repayment and lease liabilities, while ₹150 crore will be deployed to enhance its tech stack and customer interface systems. The company is betting big on AI-driven enterprise solutions, seamless digital bookings, and real-time occupancy analytics to differentiate its offerings. 'With our hybrid model evolving, we're not just offering workspaces; we're building flexible ecosystems for the new-age workforce,' Karan Virwani , CEO of the company said during a recent investor interaction. Portfolio According to DRHP, the company had a total operational portfolio of 8.87 million sq ft of gross area as of March 31, 2024, across 50 centers in nine cities . Out of this, 6.98 million sq. ft. constitutes leased and managed spaces —the core leasable area relevant for business operations. Within this segment: 5.85 million sq ft is leased space. 1.13 million sq ft is under a managed space model (also referred to as revenue-sharing arrangements). The average occupancy rate across all operational centers stood at 72% as of FY24. This marks a recovery from 64% in FY23. Offer for sale As per the DRHP, the offer for sale (OFS) component of WeWork India's IPO will see significant participation from its key promoters and early investors. Embassy Buildcon LLP, a part of the Embassy Group and a promoter entity, is proposing to offload up to 5.41 crore equity shares, marking a strategic partial exit from its investment in the co-working firm. In addition, Ivanhoe Cambridge, the real estate investment arm of Canadian pension fund CDPQ, will offer up to 4.26 crore equity shares through the OFS. The third participant is Bihar Hotels, which plans to sell up to 1.35 crore shares. Collectively, the OFS will amount to a total of 11.03 crore shares, providing a partial exit route for long-standing stakeholders while enhancing the company's public ownership base. Challenges ahead Despite its strong brand recall and improving metrics, WeWork India has flagged several business risks in its DRHP. Among them is its overdependence on leased assets, which account for a significant portion of operational expenses. The company also faces intense competition, not just from other co-working firms, but also from real estate developers increasingly eyeing the flex-space segment. Moreover, a large portion of its revenue is concentrated in metros, making it vulnerable to regional economic shifts. The company also acknowledged operational challenges around regulatory approvals, taxation, and partner ecosystem transparency, which could impact scalability. The IPO is being led by Axis Capital, ICICI Securities, and Kotak Mahindra Capital, with legal counsel provided by Shardul Amarchand Mangaldas and Latham & Watkins LLP.
Entrepreneur
17 hours ago
- Business
- Entrepreneur
WeWork Gets SEBI Nod, NSE Bags Top Rankings & PhonePe Hires Key Figure Ahead of IPO
WeWork India gets SEBI's nod for IPO with a major Offer for Sale lined up by its NSE ranks fourth globally in IPO fundraising, and PhonePe strengthens its leadership ahead of its public debut. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. One of India's leading premium flexible workspace operators, WeWork India Management Limited, and the largest operator by total revenue in the past three Fiscals, according to CBRE has been given the green signal by the markets regulator, Securities and Exchange Board of India (SEBI), to go public. The company's initial public offering (IPO) will consist of an Offer for Sale (OFS) component by promoters selling their equity shares of up to 43,753,952 equity shares, as per DOD. The offer for sale comprises up to 33,458,659 equity shares by Embassy Buildcon LLP, which is the "Promoter Selling Shareholder", and up to 10,295,293 equity shares by 1 Ariel Way Tenant Limited, which is the "Investor Selling Shareholder". JM Financial Limited, ICICI Securities Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, and 360 ONE WAM Limited are the Book Running Lead Managers (BRLMs) to the issue. WeWork India is majority-owned by Embassy Group, one of India's leading real estate developers, which has developed over 85 million square feet of commercial real estate and sponsors Embassy REIT - India's first (Real Estate Investment Trust) REIT and Asia's largest office REIT by leasable area, according to data from CBRE. As of June 30, 2024, Grade A properties accounted for approximately 93 per cent of its portfolio, according to CBRE. WeWork India's operations are located across Tier 1 cities in India - Bengaluru, Mumbai, Pune, Hyderabad, Gurgaon, Noida, Delhi, and Chennai. The company also operates WeWork Global, a global flexible office space concept with approximately 600 wholly-owned and licensed locations in 35 countries. As of September 30, 2024, WeWork India's portfolio comprised 94,440 desks across 59 operational Centres with an aggregate leaseable area for operational centres of 6.48 million square feet. NSE Ranks Fourth Globally India's National Stock Exchange (NSE) secured the fourth spot globally in IPO fundraising during the first half of 2025, raising USD 5.51 billion, according to an S&P Global Market Intelligence report. The NSE trailed behind the Nasdaq Global Market, NYSE, and Nasdaq Global Select Market, contributing 8.9 per cent of total IPO proceeds worldwide during the period. In 2024, Indian exchanges wrapped up the year with a total of INR 1.71 lakh crore raised through 333 IPOs. This included standout listings such as Hyundai Motor India's USD 3.3 billion offering, one of the largest in the country's capital markets history. Although the year began on a slower note compared to the same period in 2024, Indian markets witnessed 119 IPOs between January and June 2025, collectively raising INR 51,150 crore. This was higher than the INR 37,682 crore raised from 157 IPOs during the first half of 2024, S&P data revealed. While domestic and global equity markets showed volatility at the start of 2025, S&P's report notes signs of a recovery underway. PhonePe Hires Key Figure PhonePe, the Walmart-backed digital payments major, has appointed Shivnath Thukral as its Vice President for Public Policy and Government Affairs. Thukral, who previously led public policy efforts at Meta India, joins PhonePe's leadership at a critical juncture as the company prepares for its much-anticipated initial public offering (IPO). In his new role, Thukral will spearhead PhonePe's external engagement strategy and work closely with regulators and policymakers. He will also contribute to enhancing the company's thought leadership within the broader fintech ecosystem. Thukral recently concluded a seven-and-a-half-year stint at Meta India, where he was responsible for public policy and strategic advocacy. PhonePe, which transitioned into a public company in April 2025, is actively building momentum for its IPO. The company has brought on board leading financial advisors, including Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley, and is reportedly targeting a valuation of around USD 15 billion.
Reuters
20 hours ago
- Business
- Reuters
India markets regulator approves WeWork franchisee's IPO
July 15 (Reuters) - India's markets regulator has approved an initial public offering by WeWork India Management the domestic franchisee of the U.S. shared office space manager, according to a regulatory notice on Tuesday. WeWork India had filed draft papers for the IPO in early February. The offer consists of 33 million equity shares held by Indian real estate firm Embassy Group ( opens new tab and 10.3 million equity shares held by 1 Ariel Way Tenant. The company will not issue new shares. WeWork India is controlled by real estate tycoon Jitu Virwani and his son Karan, who own Bengaluru-based developer Embassy Group. Karan Virwani is also the CEO of WeWork India. (This story has been corrected to remove the incorrect reference to the company not disclosing how much it intends to raise through the IPO)
