WeWork India Management Limited’s Rs 3,000-crore IPO is seeing weak investor interest amid concerns about financials and promoter legal issues. NSE data shows the IPO is subscribed only 16 per cent so far, with retail investors taking 46 per cent of their quota.
Non-institutional investors and qualified institutional buyers have subscribed only 8 per cent and 9 per cent, respectively. Grey market shares trade flat at Rs 648, the upper end of the price band, showing no premium.
InGovern Research warned investors to remain cautious, citing consistent losses, negative cash flows, and high lease costs. The company had a negative net worth of Rs 437.4 crore as of March 2024. Occupancy levels remain below peers, reflecting weaker demand and low asset utilisation.
Ongoing legal cases against promoters and reliance on a 99-year license with WeWork Global add risks. Any disruption in the parent company’s platforms or intellectual property could affect operations. IPO proceeds will go entirely to promoters and selling shareholders, with no fresh capital for growth or debt reduction.
