WeWork India Makes Weak Debut with 4.14% Discount, Lists at ₹621.15 Against Weak Subscription

WeWork India Management Limited, the exclusive licensee for WeWork Global in India, operating 68 flexible workspace centres with 114,077 desk capacity across eight cities, serving enterprises like Amazon Web Services, JP Morgan, and Deutsche Telekom, made a disappointing debut on BSE and NSE on October 10, 2025. After closing its IPO bidding between October 3-7, 2025, the company commenced trading with a 0.23% discount, opening at ₹646.50 but declining to ₹621.15 with losses of 4.14%.

WeWork India Listing Details

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WeWork India Management Limited launched its IPO at ₹648 per share with a minimum investment of 23 shares costing ₹14,904. The IPO received a weak response with a subscription of just 1.15 times - retail investors at 0.62 times, NII at an extremely low 0.23 times, and QIB at 1.79 times.

First-Day Trading Performance Outlook

• Listing Price: WeWork India share price opened at ₹646.50, representing a discount of 0.23% from the issue price of ₹648, and declined further to ₹621.15, delivering losses of 4.14% at opening.

Growth Drivers and Challenges

Growth Drivers:

• Category-Defining Brand: Aspirational brand with strong international branding as the only licensee for WeWork Global in India, backed by the Embassy Group.
• Diverse Client Base: Comprehensive array of flexible workspace solutions, including custom-designed buildings, enterprise office suites, managed offices, private offices, co-working spaces serving large enterprises, small businesses, startups, and professionals across multiple sectors.
• Turnaround Story: Strong revenue growth of 17% to ₹2,024 crore in FY25, remarkable turnaround with PAT of ₹128.19 crore after losses of ₹135.77 crore in FY24, exceptional EBITDA margin of 63.41%, and impressive RoNW of 63.80%.

Challenges:

• Aggressive Valuation Metrics: Alarming P/E of 67.75x and price-to-book value of 41.62x appearing aggressively priced despite a turnaround story, pure offer for sale with no fresh capital raised for business expansion, raising concerns about promoter exit timing.
• Recent Profitability Concerns: The  Company turned profitable only in FY25 after consecutive losses in FY24 (₹135.77 crore) and FY23 (₹146.81 crore), negative net worth until FY25, requiring sustained profitability demonstration to justify premium valuation.

Utilisation of IPO Proceeds

• Pure Offer for Sale: The entire IPO is an offer for sale of 4.63 crore shares worth ₹3,000 crore with no fresh capital being raised for the company. All proceeds go to selling shareholders, reducing promoter holding from 73.56% to 48.07%, raising questions about the timing of the exit.

Financial Performance of WeWork India

• Revenue: ₹2,024 crore for FY25, showing steady growth of 17% from ₹1,737.16 crore in FY24, reflecting increasing demand for flexible workspace solutions in India.
• Net Profit: ₹128.19 crore in FY25, representing a remarkable turnaround from a loss of ₹135.77 crore in FY24 and ₹146.81 crore in FY23, indicating successful operational improvements and margin expansion.
• Financial Metrics: Impressive RoNW of 63.80%, outstanding EBITDA margin of 63.41%, net worth of ₹199.70 crore turning positive in FY25 after being negative in previous years, alarming P/E of 67.75x, extreme price-to-book value of 41.62x, and an estimated market capitalisation of ₹8,615.69 crore.