The stock opened at Rs 646.50 on the BSE, slightly below its IPO price of Rs 648, and at Rs 650 on the NSE, a modest premium of 0.3%. In early trade, the stock fell to an intraday low of Rs 614.25 on the NSE, while on the BSE it fell to Rs 615, down 4.9% from the opening price.
IPO reaction: mixed investor interest
WeWork India’s initial public offering (IPO) worth Rs 3,000 crore was fully subscribed 1.15 times, although the response from retail and non-institutional investors was lukewarm.
Retail Individual Investors (RIIs) subscribed to 61% of their share allocation of Rs 46.23 lakh, while non-institutional investors (NIIs) accounted for only 23% of their share allocation of Rs 69.35 lakh. Qualified Institutional Buyers (QIBs) provided the subscription and transferred their share 1.79 times.
The IPO was fully structured as an Offer-for-Sale (OFS), meaning the company will not raise any new capital; proceeds will go to existing shareholders, including Embassy Group and WeWork Global, which will also continue as a brand licensor and investor in India. The price band was fixed at Rs 615-648 per share, and the issue closed on October 7. Gray market signals and broader market context Prior to the listing, the Gray Market Premium (GMP) was a modest 0.77% above the issue price, reflecting subdued investor excitement in the near term.
The debut comes amid a busy week for India’s primary market, with LG Electronics India’s IPO exceeding subscriptions by 54.02 times and Tata Capital attracting $1.24 billion in bids.
What do analysts say?
WeWork India’s IPO was flat, overshadowed by heavy legal scrutiny and subdued investor interest due to governance and disclosure concerns, said Khushi Mistry, research analyst at Bonanza.
“WeWork India’s listing, amid unresolved legal and regulatory headwinds, requires heightened caution. Sustained optimism requires visible progress on compliance, promoter conduct and clarity from ongoing legal proceedings before any substantive revaluation or long-term bet,” Mistry said.
Business growth and valuation
Founded in 2017, WeWork India operates 68 high-end flexible workspaces across eight cities, spanning 7.35 million square feet, serving top clients such as JP Morgan, Amazon and Uber. Enterprise tenants account for almost 60% of the portfolio, well above the sector average.
The company has also achieved a financial turnaround in recent years. Revenue rose from Rs 1,314 crore in FY23 to Rs 1,949 crore in FY25, while profit for the same period fluctuated from a loss of Rs 147 crore to a net profit of Rs 128 crore. Adjusted EBITDA margins reached 21.6% in FY25, indicating operational efficiencies.
However, the IPO valuation is more expensive as the offer is priced at 65 times FY25 earnings at the top end of the range. Listed competitor Awfis Space trades at a price-to-earnings ratio of 58x, while other competitors such as Smartworks and Indiqube remain unprofitable.
Also read | Explained: Reliance Industries is India’s most valuable company, but why isn’t it number 1 in Nifty50 weight?
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
as a reliable and trusted news source#Shares #WeWork #India #flat #debut #investors