WeWork India Management Limited’s initial public offering (IPO), aiming to raise ₹3,000 crore, has garnered attention due to several concerns raised by governance advisory firms and market analysts.
The offering, which opened on October 3, 2025, and is set to close on October 7, is structured entirely as an Offer for Sale (OFS), meaning no new capital will be infused into the company. Instead, existing shareholders, primarily Embassy Buildcon LLP and 1 Ariel Way Tenant, a subsidiary of WeWork Global, are selling their stakes.
One of the primary concerns highlighted by InGovern Research Services is WeWork India’s financial health. Despite reporting a revenue of ₹2,024 crore and a net profit after tax of ₹128.19 crore for the fiscal year 2025, the company’s financials show signs of strain.
The company continues to report negative cash flows, with lease costs consuming over 43% of its revenues.
Additionally, the net profit was largely driven by a deferred tax credit, raising questions about the sustainability of its profitability
Another significant issue is the governance structure and promoter-related concerns. Over 53% of WeWork India’s pre-IPO shares held by Embassy Buildcon were previously pledged against approximately ₹2,065 crore of borrowings.
These pledges were temporarily released to facilitate the IPO, with an agreement that if the listing does not occur, the shares would need to be re-pledged within 45 days. This arrangement has raised concerns among potential investors about the stability and governance of the company.
The IPO’s subscription has been tepid, with the issue subscribed only 7% by the second day of bidding, up from 4% on the first day. The employee segment was the only category to show stronger interest, being oversubscribed at 1.2 times.
The muted response from institutional and retail investors may reflect the concerns raised by InGovern and other market participants.
WeWork India, a franchisee of the U.S.-based WeWork, operates 59 centers across major Indian cities, maintaining occupancy rates above 80%.
The company has reported steady revenue growth and profitability in recent years. However, the absence of new capital infusion through this IPO and the highlighted governance issues may impact investor confidence.
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