WeWork India IPO crawls on day 2 – Should you subscribe? Anil Singhvi shares his take

WeWork India IPO Day 2: The initial public offering (IPO) of WeWork India Management Ltd, the country’s largest co-working space operator, witnessed a modest response on its second day of subscription.

As of Monday, October 6, the issue received 4 per cent subscription, reflecting cautious investor sentiment in the current market environment.

WeWork India IPO Price Band

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The price band for the issue has been set at Rs 615–Rs 648 per share, valuing WeWork India at around Rs 8,685 crore at the upper end.

WeWork India IPO Subscription Date

The company has already raised over Rs 1,348 crore from anchor investors ahead of the public offering. The IPO will close on October 7.

WeWork India IPO Subscription Status

According to data from the NSE, WeWork India’s IPO received bids for 17,02,069 shares against the 2,54,89,748 shares on offer.

Among investor categories, retail individual investors (RIIs) subscribed to 24 per cent of their quota, while qualified institutional buyers (QIBs) and non-institutional investors (NIIs) subscribed just 2 per cent and 4 per cent, respectively.

The IPO, valued at Rs 3,000 crore, is entirely an offer for sale (OFS) of up to 4.63 crore equity shares.

Promoter group entity Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) are divesting their stakes.

As a result, WeWork India itself will not receive any proceeds from the share sale.

Instead, the listing is aimed at providing liquidity to existing shareholders, enhancing visibility, and creating a public market for the stock in India.

What Market Guru Anil Singhvi Advised?

Market expert Anil Singhvi sees the IPO as a good option mainly for investors with a long-term, risk-taking approach.

He praised WeWork India’s strong brand value, market leadership in co-working, reputed promoters, and profitability at the operating level.

However, he also cautioned that the company is yet to achieve consistent net-level profitability.

His advice: risk-averse investors should wait for the listing before entering, while those willing to take risks may consider applying for long-term gains.

WeWork India Company Profile

Founded in 2017, WeWork India operates under an exclusive licence of the global WeWork brand, promoted in India by Bengaluru-based Embassy Group, which currently holds about 76.21 per cent stake.

WeWork Global owns 23.45 per cent of the company. At present, WeWork India operates across Tier-1 cities such as Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai, managing about 77 lakh sq ft of space with a desk capacity of 1.03 lakh.

The company employs over 500 people and has built strong relationships with real estate developers, allowing it presence in prime properties across cities.