WeWork India has been sued by investor Vinay Bansal for allegedly failing to disclose a criminal chargesheet against its promoters.
Bansal’s petition in the Bombay High Court claims WeWork’s DRHP contains misleading statements and key non-disclosures.
He has requested the court to direct SEBI to resolve his complaint under Section 11A of the SEBI Act.
Co-working space start-up WeWork India has reportedly been sued by one of its investors for failing to disclose a criminal chargesheet filed against its promoters for serious economic offences. The lawsuit comes just a day before the company is set to launch its initial public offering (IPO).
According to a Times of India report, 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.
Bansal had earlier complained to market regulator 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.
The petition argues that under Section 11A of the SEBI Act, the regulator has the power to block such an issue to protect investors.
Bansal is now asking the court to direct SEBI to dispose of his complaint through a reasoned and speaking order within a specified timeframe, the report stated.
The petition also seeks a directive for SEBI to investigate the allegations and to keep the public listing of WeWork India in abeyance until the petition is resolved.
“In case SEBI finds that an offer document contains misleading statements, conceals material facts, or is structured in a manner that could harm investors, it can invoke its powers under Section 11A of the SEBI Act to prevent the issue from proceeding to the market,” the petition said, according to TOI.
WeWork India’s IPO opens on October 3 with a price band of ₹615–₹648 per share and will close on October 7, with anchor bidding on October 1.
The issue is a pure Offer for Sale (OFS) of up to 4.37 crore shares, mainly from promoter Embassy Buildcon LLP and investor Ariel Way Tenant, with no fresh equity infusion. Proceeds will go entirely to the selling shareholders, with allocations set at 75% for QIBs, 15% for NIIs, 10% for retail investors, and 5% reserved for employees.
