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Tag: WeWork India

  • WeWork India to Launch INR 3,000 Crore IPO on October 3: Key Details and What to Expect

    According to various media reports, WeWork India, a prominent co-working company, is preparing to conduct its initial public offering (IPO) on October 3. With an estimated price range of INR 615 to INR 648 per share of face value INR 10 each, the issue size is estimated to be close to INR 3,000 crore.. The red herring prospectus (RHP) states that the issue will close on October 7 and that anchor investor bidding will start for one day on October 1.

    The planned IPO is only an Offer for Sale (OFS) of up to 4.63 crore equity shares, according to the draft documents. Shares will be sold by investor 1, Ariel Way Tenant Ltd (a division of WeWork Global), and promoter group company Embassy Buildcon LLP. The listing will not generate any revenue for WeWork India since the issue is an OFS. Currently, WeWork Global owns 23.45% of WeWork India, while Embassy Group owns roughly 76.21%.

    WeWork India Aims to Benefit From Going Public

    WeWork India was founded in 2017 and is run under an exclusive license of the “WeWork” name in India. It is supported by the Embassy Group, a significant real estate company based in Bengaluru. The goal of the offer, according to WeWork India’s draft documents, is to reap the rewards of listing its equity shares on stock exchanges.

    The company anticipates that the listing will increase visibility, give current shareholders liquidity, and create a public market for its stock in India. WeWork Global collected INR 500 crore through a rights issue in January 2024, mainly to fund expansion and decrease debt, after investing $100 million in 2021.

    Major tier 1 cities such as Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai are home to WeWork India’s activities. With a desk capacity of 1.03 lakh, it now oversees 77 lakh square feet of area, of which 70 lakh square feet are used for operations. Over 500 people work for the company. WeWork India is anticipated to make its stock exchange debut on October 10th, with the initial public offering (IPO) taking place in early October.

    Due to a robust IPO market and a resurgence of investor interest in tech equities, a number of technology businesses intend to go public in 2025.

    Lenskart, an eyeglasses startup, has contacted investment banks to present for the mandate for its possible initial public offering (IPO), which may raise $1 billion. Groww, a stock broker, had selected five investment banks for a $1 billion initial public offering.

    In the near future, startups like SoftBank-backed OfBusiness and contract maker Zetwek hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025.

    This comprises companies that aim for $500 million initial public offerings (IPOs), such as edtech company PhysicsWallah, AI unicorn Fractal, construction materials portal Infra.market, and leader in rapid commerce Zepto.

    With solid institutional support and a broad range of digital payment and issuance tools designed for India’s quickly digitising commerce sector, Pine Labs’ initial public offering (IPO) is anticipated to be a notable fintech listing in 2025.

    Quick
    Shots

    •Anchor bidding will be held for one
    day on October 1, 2025.

    •WeWork Global holds 23.45%, Embassy
    Group holds 76.21% of WeWork India.

    •Listing aims to enhance visibility,
    provide liquidity to existing shareholders, and create a public market for
    its stock.

    •WeWork India operates across major
    Tier-1 cities with a 1.03 lakh desk capacity and 77 lakh sq. ft. under
    management.

  • Draft IPO Documents are Submitted to SEBI by WeWork India Management

    WeWork India Management, an office-sharing business owned by the Embassy Group, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), the capital markets regulator, in order to acquire money through an initial public offering (IPO).

    An offer for sale (OFS) of up to 4.37 crore equity shares is part of the company’s first public offering (IPO). The OFS includes up to 1.02 crore equity shares held by 1 Ariel Way Tenant Limited (Investor Selling Shareholder) and up to 3.34 crore equity shares held by Embassy Buildcon LLP (Promoter Selling Shareholder). Proceeds from the sale offer will not be given to the company.

    Share Proportion of WeWork India

    The main stake in WeWork India is held by Embassy Group, which has constructed more than 85 million square feet of commercial real estate and is the sponsor of Embassy REIT, the first REIT in India and the largest office REIT in Asia in terms of leasable area, according to Coldwell Banker Richard Ellis (CBRE), the American commercial real estate services and investment company.

    One of the few flexible workspace providers in India with the support of a significant real estate developer is WeWork India. Embassy Buildcon LLP owns 76.21% of the business, with public stockholders owning the remaining shares, including 23.45% of the UK-based 1 Ariel Way Tenant. The issue’s book running lead managers are JM Financial Ltd, ICICI Securities Ltd, Jefferies India Pvt Ltd, Kotak Mahindra Capital Company Ltd, and 360 ONE WAM Ltd.

    Financial and Operational Dynamics of WeWork India

    WeWork India serves a wide spectrum of clients, including startups, small and mid-sized businesses, individuals, and large corporations, by offering flexible, high-quality workspaces. A notable list of Fortune 500 firms, domestic and foreign corporations, major enterprises, GCCs, MSMEs, and startups are among its members.

    About 93% of our portfolio as of June 30, 2024, consisted of Grade A properties. In terms of earnings, the company reported a loss of INR 146.8 crore in the previous fiscal year, which decreased to INR 135.8 crore in the fiscal year 2024. However, income increased by 26.7% to INR 1,665.1 crore during that same time, compared to INR 1,314.5 crore. On revenue of INR 918.2 crore, profit for the six-month period ending in September 2024 was INR 174.6 crore.

    WeWork Marking Stronger Presence in India

    WeWork Global made headlines in 2023 when it declared bankruptcy in the US due to post-pandemic stress, skyrocketing real estate prices, exorbitant leasing costs, and its incapacity to repay loans. However, the Indian arm then emphasised that it is a stand-alone business, thriving with ambitious expansion plans, and remains largely unaffected by the insolvency.

    WeWork India also announced in January that it had raised INR 500 crore through the issuance of securities through its parent company, WeWork, and the Embassy Group. According to the corporation, the money would be used to pay down current debt, lower capital expenses, and move towards becoming “debt-free.” WeWork India has 94,440 desks spread across 59 operational centres as of September 30, 2024, with a total of 6.48 million square feet of leaseable space for operational centres.

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  • WeWork Intends to go Public in India at a Valuation of More Than $2 Billion

    According to reports, WeWork India, a joint venture between the American co-working giant WeWork and the Bengaluru-based real estate company Embassy Group, is considering preparations for an initial public offering (IPO). WeWork India is looking to go public with a target valuation of $2 billion to $2.5 billion. JM Financial has been designated as the book-running lead manager for the issue by the company, according to reports.

    The IPO is expected to increase the valuation of WeWork India, which was valued at less than $400 million in its most recent investment round in 2020. According to the report, the company hopes to collect $350 million to $475 million through its first public offering.

    WeWork’s IPO Offerings

    Depending on the state of the market, the exact figures will be decided closer to the IPO date. Both a primary capital raise to assist corporate expansion and a secondary stake sale by current shareholders, including WeWork US, will be part of the offering.

    The South Korean automaker Hyundai Motor Company, whose Indian unit is listed at a little discount after the nation’s largest IPO, had a disastrous Indian market debut. Now, WeWork’s intention to go public in the Indian stock market is a very interesting development for market observers to look forward to.

    Plans to Launch the IPO in 2025

    By year’s end, the corporation is supposed to submit the required paperwork. The Embassy Group is also hoping to shore up liquidity through the issuance; therefore, the firm is aiming for a listing by the first half of 2025. WeWork US came out of bankruptcy earlier this year with a $750 million equity valuation, and Anant Yardi, a digital entrepreneur of Indian descent, became the new majority owner. According to reports, the Embassy, supported by the Virwani family, attempted to purchase a 27% share in WeWork India from WeWork Global, but those plans were unsuccessful.

    WeWork India sought to raise approximately $150 million from a group of investors, including Mithun Sacheti, the creator of CaratLane, the family office of Enam Group, and venture fund A91 Partners, in order to finance this transaction. The deal ultimately fell through, despite the company’s goal of a $550 million valuation.

    About WeWork

    With the goal of establishing spaces where individuals and businesses can collaborate and perform at their highest level, WeWork was established in 2010. Since establishing its initial office in New York City, the company has expanded to become a global provider of workplace solutions dedicated to offering adaptable solutions, motivating, secure environments, and unparalleled community experiences. Since that’s how the future operates, WeWork is always rethinking how the workplace can make everyone—from Fortune 500 companies to independent contractors—more driven, effective, and content.

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