The IPO, priced between ₹615 and ₹648 per share, seeks to raise between ₹2,847 crore and ₹3,000 crore. The issue has no fresh issue and is purely an offer for sale by promoters and shareholders of 4.63 crore shares.
Important things to know from the company’s Red Herring Prospectus (RHP):
1) About the Firm: WeWork India Management Limited, established in 2016, has emerged as a leading flexible workspace operator in the country. The company offers a wide range of workspace solutions, including custom-designed buildings, enterprise office suites, managed offices, private offices, co-working spaces, and hybrid digital models, catering to diverse client requirements.
2) Selling Shareholders: WeWork India’s promoter, Embassy Buildcon LLP, is set to offload 3.54 crore shares, while investor Ariel Way Tenant Ltd (WeWork International) will divest 1.089 crore shares. Ahead of the IPO, Embassy Buildcon LLP holds a 73.56 percent stake in the company, whereas WeWork International owns 22.64 percent.
3) Financial Performance: WeWork India reported a 19.3 percent year-on-year increase in its June quarter revenue, which rose to ₹535.3 crore from ₹448.6 crore in the corresponding quarter of the previous year.
The company posted an adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin of 18.05 percent in the first quarter, compared to 21.67 percent in the same period last year.
During the quarter under review, WeWork India recorded a net loss of ₹14.1 crore, an improvement from the net loss of ₹29.1 crore reported in the year-ago quarter. Its average revenue per member or billed desk fell 3.3 percent to ₹19,085 as against ₹19,744 in the previous year.
