On the penultimate day of its initial public offer, WeWork India reported a disappointing subscription rate of just 13%, as indicated by exchange data. Typically, institutional investors and high-net-worth individuals show increased activity on the last day of an offering, but the lack of enthusiasm in this case is pronounced.
Currently, only 9% of the Qualified Institutional Buyers (QIB) portion has been subscribed, along with 6% of the non-institutional segment and 37% of the retail share. Arun Kejriwal, an independent primary market analyst, noted, “The issue is expensive compared to its peer set,” but he also remarked that historically, no issue has ever failed to get fully subscribed, suggesting that a full subscription may still be possible.
The IPO is priced between ₹615 and ₹648 per share, with an offer for sale capped at ₹3,000 crore from Embassy Buildcon and WeWork International. The anchor book has raised approximately ₹1,348 crore, attracting 67 local and global funds.
Sentiment surrounding the IPO has been negatively impacted by the criminal cases filed against the company, its directors, and promoters by enforcement agencies. Additionally, after the filing of the Red Herring Prospectus, investors Vinay Bansal and Hemant Kulshrestha brought forth writ petitions in the Bombay High Court. They claimed that using the ‘WeWork’ brand benefits the promoters over the company’s interests and that the funds raised would not create tangible assets for a company that has incurred losses for several years, implying that the offering serves mainly to provide an exit for the promoter, Embassy Buildcon.
WeWork India included these petitions in an addendum to the Draft Red Herring Prospectus. During a hearing last Friday, both the Securities and Exchange Board of India (SEBI) and WeWork India’s lead managers affirmed that necessary disclosures had been made and transparency had been maintained. Attempts to obtain clarifications from WeWork India and its PR agency were met with no response.
Proxy advisory firm InGovern Research Services raised concerns about the company’s weak financials in a note about the IPO. Shriram Subramanian, Founder and Managing Director of InGovern, stated, “Given that the company continues to post losses, the absence of fresh capital raises questions about how it plans to fund its operations.” He highlighted regulatory uncertainties and valuation issues, noting that the IPO is competing for liquidity with other offerings from companies like IG Electronics and Tata Capital, suggesting that investors will be careful with their choices.
Published on October 6, 2025.
