According to InGovern’s analysis, the company has consistently reported negative cash flows, and its lease costs account for more than 43% of its revenue from operations. The reported profit in FY25 is largely due to a deferred tax credit rather than operational profitability.
The analysis also raised concerns about governance practices, specifically regarding promoter share pledges. A large chunk of shares held by Embassy Buildcon was pledged pre-IPO for borrowing. Although these shares have been released, regulations require them to be repledged if there is a delay in the IPO listing. This affects promoter control and raises investor concerns.
In the grey market, WeWork India shares are trading at a premium of Rs 5, or about 0.77%, over the issue price of Rs 648. This suggests a potential listing price around Rs 653, reflecting modest investor optimism in unofficial pre-listing activity.
WeWork India’s Rs 3,000-crore IPO comprises 4.62 crore equity shares and is entirely structured as an Offer for Sale (OFS). This means the company will not receive any proceeds; instead, the funds will go to existing shareholders, including Embassy Group and WeWork Global, who are partially offloading their stakes.
The IPO valuation is priced at a premium. At the upper end of the price band, the offer is valued at 65 times FY25 earnings. For comparison, listed peer Awfis Space is trading at a P/E ratio of 58x, while other sector players like Smartworks and Indiqube have yet to achieve profitability.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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