NEW DELHI: Co-working major WeWork India, which plans to launch an initial public offering (IPO), has posted a profit of Rs 174.13 crore in the first six months of this fiscal amid rising demand for premium flexible workspace.
Total income stood at Rs 960.76 crore during the April-September period of the current 2024-25 financial year, according to the company’s Draft Red Herring Prospectus (DRHP) filed with Sebi last week.
The comparative figures are not available.
In the full 2023-24 fiscal, WeWork India posted a net loss of Rs 135.83 crore over a total income of Rs 1,737.16 crore.
Net debt of WeWork India Management Ltd, which filed preliminary papers with Sebi last week to float an IPO, stood at Rs 316.95 crore as on January 15, 2024, the DRHP said.
Established in 2017, WeWork India is promoted by Bengaluru-based real estate company Embassy Group. It has the exclusive licensee of the ‘WeWork’ brand in India.
In WeWork India, Embassy Group has around 76.21 per cent stake while WeWork Global owns 23.45 per cent.
WeWork Global had in June 2021 invested USD 100 million in WeWork India. Last month, WeWork India raised Rs 500 crore through rights issue, mainly to reduce debt and achieve further growth.
As per the DRHP, the proposed IPO is entirely an Offer for Sale (OFS) of equity shares of up to 4.37 crore equity shares. Promoter group firm Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) will offload shares.
Through the OFS, Embassy Buildcon LLP will sell up to 33,458,659 equity shares bearing a face value of Rs 10 each, while 1 Ariel Way Tenant Ltd up to 10,295,293 shares.
Since it is an OFS, WeWork India will not receive any proceeds from the IPO.
In its draft papers, the company stated that the object of the offer is to achieve the benefits of listing the equity shares on the stock exchanges.
“Our company expects that listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders. The listing will also provide a public market for the equity shares in India,” WeWork India said in the DRHP.
WeWork India provides flexible, high-quality workspaces to customers, which include companies of all sizes as well as individuals. It primarily leases Grade A office space from leading developers across Tier 1 cities and design, build, and operate them as flexible workspaces.
Its portfolio comprises 77 lakh square feet of area, of which 70 lakh square feet is already operational. The operational desk capacity has reached 1.03 lakh.
The company has a presence in Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. It has more than 500 employees.
