WeWork India Management Limited launched its Initial Public Offering (IPO) today in the primary markets. The initial public offering will remain open for potential investors till the 7th of October.The IPO of We Work Ltd opens on 3rd October and closes on 7th October. Moreover, for people interested in the IPO, the company has announced the Price band at Rs. 615- Rs. 648 for 1 equity share.
We Work Ltd's IPO will be listed on the NSE and BSE, respectively, for people to invest. According to the company, it is aiming to generate around Rs. 3000 crores from the IPO this is interesting considering the IPO is an offer for sale. For individuals not familiar with the offer for sale concept. It basically means that the proceeds generated by a company from its IPO will not be shown in its balance sheet. According to grey market experts, the shares of We Work Ltd are available for investment in the grey market. Moreover, they added that the grey market premium of these shares is Rs. 15 more. So, in layman's terms, it means if an investor buys the shares through the grey market, they will pay a premium of 15 Rs.
Well, by the time the market closed today, the IPO of We Work Ltd had been overbooked by 0.03 times. Meanwhile, the retail part of the IPO has been overbooked by 0.13 times, whereas the Non-Institutional Investors segment was overbooked by 0.01 times. Lastly, the Qualified Institutional Buyer's segment has been overbooked by 0.00 times.
According to Anshul Jain of Lakshmishree Investment, "WeWork India Management Ltd. exhibits a strong financial turnaround and operational excellence, highlighted by its transition to profitability with a Net Profit of ₹128 Crore in FY25 (vs. a Net Loss of ₹136 Crore in FY24). This positive momentum is built on robust revenue from operations of ₹1,949 Crore in FY25 and a solid EBITDA margin of over 60%. WeWork India Management Ltd.’s strategy focuses on deepening its presence in Tier-1 cities, catering to the growing demand from large enterprises, and expanding its diverse product portfolio of flexible and managed solutions. We recommend that investors seeking exposure to a market-leading, financially sound, and well-managed company poised for sustainable growth in the future of Indian real estate consider SUBSCRIBING for a medium-to-long-term perspective."
Moreover, according to a Canara Bank Securities report, "We Work the Company has entered the primary market, while competitors like Awfis and Smartworks are already listed. Management expects shifts in US immigration policy, including tighter H-1B visa regulations, to boost demand for the Indian workforce by retaining talent locally. Revenue grew from Rs. 1,314 Crore in FY23 to Rs. 1,949 Crore in FY25 (CAGR 21.77%); PAT moved from - Rs. 147 Crore in FY23 to + Rs. 128 Crore in FY25. The IPO is priced at 65x PE, compared to only one profitable peer at 58x PE, which appears to be on the higher end. Growth supported by rising grade A office supply in India; superior margins attributed to flexible offerings—from hourly desk bookings to multi-month floor leases."