WeWork IPO Opens Today Amid Legal Troubles: IPO GMP Hints At Modest Listing; Should You Subscribe?

WeWork IPO Opens Today: The Initial Public Offering (IPO) of WeWork India Management Limited is all set to open for subscription on Friday, October 3. The Bengaluru-based office space provider is facing a petition at the Bombay High Court.

An investor, Vinay Bansal, filed a petition before the Bombay High Court (Bombay HC) against WeWork Limited. The petitioner has alleged that WeWork's Draft Red Herring Prospectus (DRHP) contains material non-disclosures and misleading statements, as reported by Times of India. Bansal has alleged that the company has not disclosed a criminal chargesheet filed against the promoters. While the matter is still pending in court, the WeWork IPO subscription is set to begin today.

WeWork IPO Opens Today: IPO GMP Today

WeWork India IPO's last GMP stood at Rs 15 per share, which has remained unchanged over the past three days, according to investorgain.com. The IPOs estimated listing price is Rs 663 per share, which is the sum of IPO GMP and its upper price band. The company is expected to be listed at a percentage gain or loss per share by 2.31%.

WeWork IPO Opens Today: Key Things To Know

The IPO is a bookbuild issue of Rs 3,000 crores which is an entirel offer for sale of 4.63 crore of Rs 3,000 crore. The IPO will open for subscription on Friday, October 3, and will conclude on October 7. Its IPO allotment is expected to be finalised on October 8, according to Chittorgarh.com with its tentative listing on October 10.

Price Band

The company has fixed price band at Rs 615- Rs 648 per share. The company has fixed lot size as 23 for an application. A retail investors is required to make a minimum investment of Rs 14,904. Whereas the lot size investment for sNII is 14 lots, ie 322 shares, which is equal to Rs 2,08,656. For bNII, the company has fixed 68 lots equivalent to Rs 10,13,472.

About WeWork

The company is a premium flexible workspace operator in India. Its business model involves leasing buildings from landlords, undertaking fit-outs and transforming these spaces into fully managed, modern, tech-enabled and productive offices for clients. The company has nearly 68 operational centres across 8 cities in India.

WIML is majority-owned and promoted by Embassy Group, which is a leading real estate developer in India. Its multi-asset relationships with various prominent developers across major tier-1 cities like DLF, Nesco, Prestige Estate Projects, etc, will also come in focus.

WeWork IPO Opens Today: Should You Subscribe?

WeWork is the exclusive licensee of the WeWork brand in india and it benefits from its relationship with WeWork Global, noted SBI Research in its report. "At the upper price band of Rs 648, the issue is valued at FY25 P/E multiple of 50.1x based on the post-issue capital, which seems fairly valued. We maintain a NEUTRAL view on the company and would like to monitor the performance of the company post listing," noted the brokerage in its report.