CHENNAI: Early subscription numbers on Day 1 of WeWork India's Rs 3,000-crore initial public offering (IPO) were subdued, with the issue subscribed only a fraction of the total. The retail investor portion saw about 7% subscription by mid-morning.
The co-working space major launched its IPO today (October 3). The issue, which closes on October 7, is being offered entirely as an Offer for Sale (OFS), with no fresh capital being raised. Promoter and investor holdings are being offloaded in this sale.
The price band has been fixed at Rs 615–Rs 648 per share, with a total of about 4.63 crore shares on offer. At the upper end of the band, the issue size is pegged at Rs 3,000 crore. The allotment of shares is expected on October 8, with a tentative listing scheduled for October 10 on both the NSE and BSE.
Ahead of the IPO, the company raised RS 1,348 crore from 67 anchor investors at the upper band price of Rs 648.
In the grey market, the IPO is quoting at a modest premium of around ₹15 over the issue price, indicating limited listing enthusiasm. Analysts suggest the lukewarm grey market premium reflects cautious investor sentiment rather than strong demand.
WeWork India is among the country’s leading flexible workspace providers, operating multiple centres across major cities under long-term lease arrangements. Its asset-light model involves leasing premium commercial real estate, customizing it, and sub-letting on flexible terms. The company has improved its financial performance in recent years, moving toward profitability in FY25. Its revenue-to-rent multiple, reportedly around 2.7 times, is considered a key strength compared to peers.
Analysts caution that since the IPO is entirely an OFS, WeWork India itself will not receive fresh capital from the listing. High fixed lease commitments remain a structural risk—any dip in occupancy or tenant renegotiation could pressure margins. Past losses, regulatory uncertainties, and legal challenges, including a pending petition alleging misstatements in disclosures, add further caution.
Investor response in the coming days, particularly from qualified institutional buyers (QIBs) and high-net-worth individuals (HNIs), will determine the strength of the issue. While sector prospects remain promising, especially with rising demand for flexible office spaces, the stock’s near-term performance will hinge on subscription momentum and listing sentiment.
The IPO’s modest grey market premium suggests limited listing gains unless stronger demand builds up in later bidding. Post-listing, execution on occupancy growth and cost management will be critical for sustaining valuations.