CLSA sold 8.4 lakh shares of WeWork India worth ₹52 crore at ₹618.55 each
Stock has dropped from ₹650 listing price to ₹606.05
IPO subscribed 1.15x; retail participation muted
WeWork India Management has faced fresh selling pressure after global brokerage firm CLSA sold 8.4 lakh shares of the recently listed co-working space provider. The shares were sold at a price of ₹618.55 apiece, taking the deal size to ₹52 crore.
The deal triggered further weakness in the stock price. Shares of WeWork India were listed at ₹650 per share on the NSE, a premium of 0.31% on their market debut. The issue had a price band of ₹615-648 per share. However, it has now reached to ₹606.05 apiece on the BSE today (Tuesday).
This shows that WeWork’s struggles continue even after a successful offer-for-sale (OFS). The ₹1,200-crore IPO had been subscribed just 1.15 times, largely supported by institutional investors, while retail participation remained muted.
The entire issue was an OFS by existing shareholders, including Embassy Group and WeWork Global, meaning the company itself did not raise fresh capital.
While the company has reported a turnaround—revenues rising from ₹1,314 crore in FY23 to ₹1,949 crore in FY25, and profits swinging from a ₹147-crore loss to a ₹128-crore profit—the premium valuation of FY25 earnings and ongoing ownership disputes continue to weigh on market sentiment.
Founded in 2017, WeWork India operates under an exclusive licence of the WeWork brand in India, promoted by Bengaluru-based real estate developer Embassy Group.
Currently, WeWork India operates across Tier 1 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai, managing 77 lakh sq ft of space, of which 70 lakh sq ft is operational, with a desk capacity of 1.03 lakh.
In its draft papers, WeWork India stated that the objective of the offer is to achieve the benefits of listing its equity shares on the stock exchanges. The company expects the listing to enhance visibility, provide liquidity to existing shareholders, and establish a public market for its stock in India.
The company has reportedly been sued by one of its investors for failing to disclose a criminal chargesheet filed against its promoters for serious economic offences. Investor Vinay Bansal has filed a petition in the Bombay High Court, alleging that WeWork’s Draft Red Herring Prospectus (DRHP) contains misleading statements and key non-disclosures.
Even earlier too, he had complained to Sebi, highlighting gaps in both the DRHP and the updated Red Herring Prospectus (RHP), including incorrect disclosures on brand ownership, the company’s weak financial position, and the concealment of serious criminal proceedings against its promoters.
