SEBI Halts WeWork India IPO Amid Regulatory Uncertainty

Nearly two months ago, WeWork India filed its Initial Public Offering (IPO) documents with the Securities and Exchange Board of India (SEBI), which stated that the “issuance of observations kept in abeyance”. 

The SEBI's action indicates a temporary halt in proceedings due to a pending investigation or regulatory action, and it has not disclosed specific reasons or offered further clarification.

WeWork India filed its DRHP in February 2025, proposing a total offer-for-sale (OFS) of ~4.37 crores of equity shares. The offering comprised ~3.34 crore shares from the promoter group, Embassy Buildcon LLP, and ~1.02 crore shares from the investor, 1 Ariel Way Tenant Limited. The selling shareholders will receive the proceeds from the OFS, as there is no fresh capital infusion is involved.

Established in 2017, WeWork India is a major player in India's coworking space market. It is a joint venture between U.S. based WeWork Inc. and India’s Embassy Group, holding 22.71% and 73.82% stake, respectively.

The company operates on a flexible workspace model, leasing large commercial office spaces, transforming them into modern coworking environments, and then subleasing them to businesses, startups, and freelancers. It attracts large corporations as clients and has a revenue-sharing model with its landlords. 

WeWork India’s revenue comes from membership plans, private office rentals, and enterprise solutions. Additionally, the company provides value-added services such as event spaces, conference rooms, and technology-driven workspace solutions. The company operates in cities like Bengaluru, Mumbai, Pune, Gurgaon, Hyderabad, Delhi, Noida, and Chennai.

As per the recently available DRHP, the operational revenue for the financial year 2023-24 stood at Rs. 1,665.13 crores, a YoY increase of 26.67% from Rs. 1,314.5 crores in the financial year 2022-23. The Net Loss narrowed from Rs. 146.8 crore in FY23 to Rs. 135.77 crore in FY24.

The company has identified Awfis Space Solutions as its competitor in the listed market. In comparison, Awfis Space reported a Diluted Earnings Per Share (EPS) loss of Rs. 2.79 per share, whereas WeWork India reported a loss of Rs. 10.73 per share in FY24.

While WeWork India operates independently from its U.S. counterpart, the DRHP notes that negative public perceptions following WeWork Inc.’s bankruptcy in November 2023 could impact its business.

The Book Running Lead Managers (BRLMs) for the IPO include JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM. 

As the regulatory status remains unclear, investors and stakeholders await SEBI’s further guidance on WeWork India’s public listing plans.