WeWork India IPO: The Real Story Behind the Slow Start & Vanishing GMP

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The Indian stock market has been buzzing with IPOs, and the latest big name to enter the ring is WeWork India. This isn't just any IPO; it's a massive Rs 3,000 crore issue that's been on everyone's radar. The subscription window opened on October 3 and is set to close on October 7, but as we roll through the second day, the story isn't quite what many expected. Let's dive in and unpack what’s really going on with this much-talked-about public offering.

Key Highlights

• ✓ The WeWork India IPO is a Rs 3,000 crore issue, structured entirely as an Offer for Sale (OFS).
• ✓ Subscription has been slow, reaching just 0. 09 times overall by the afternoon of Day 2.
• ✓ The Grey Market Premium (GMP) has fallen to nil, indicating weak initial demand for the shares.
• ✓ Financially, the company has seen a major turnaround, swinging from a loss of Rs 147 crore to a profit of Rs 128 crore in FY25.
• ✓ Brokerages are offering mixed but generally positive long-term views, with "Subscribe" ratings from firms like AnandRathi and Nirmal Bang.

Breaking Down the IPO Details

First things first, let's get the core details straight. The price band for the WeWork India IPO has been set at Rs 615 to Rs 648 per share. For retail investors like you and me, the minimum application is for one lot, which consists of 23 shares. This means if you're looking to get in on the action, the minimum investment at the upper end of the price band is Rs 14,904.

Now, here's a crucial point: this entire issue is an Offer for Sale (OFS). In simple terms, this means the company, WeWork India, won't receive a single rupee from the money raised. Instead, all the proceeds from the sale of 4. 63 crore shares will go directly to the existing shareholders who are selling their stakes. The primary sellers are the promoters, Embassy Buildcon LLP, and a WeWork Inc. affiliate, 1 Ariel Way Tenant Ltd. This is purely about providing an exit route and liquidity for the current owners. What's particularly interesting is

💡 What's compelling: Unlike many IPOs that raise funds for expansion or debt reduction, this OFS means the company's balance sheet won't get any new capital from the public offering. All Rs 3,000 crore goes to the selling shareholders. Analysts note that

The Subscription Story: A Slow Burn

So, how has the market responded. Honestly, it's been a bit of a lukewarm reception so far. After a slow start on Day 1 where the issue saw only 4% subscription, the second day hasn't picked up much steam either. As of the afternoon of October 6, the overall subscription stood at a mere 0. 09 times, or 9%.

Let's break that down. The retail investor portion, which is often the most enthusiastic, was subscribed just 0. 29 times. The response from institutional investors was even more tepid, with the Qualified Institutional Buyers (QIB) category at 0. 02 times and Non-Institutional Investors (NIIs) at 0. 04 times. These numbers suggest that the big players are holding back, at least for now.

However, there is one fascinating bright spot in this otherwise quiet landscape. The portion reserved for employees has been fully booked. In fact, the employee section was oversubscribed at 1. 31 times within just a few hours of the IPO opening. This is a strong vote of confidence from the people who know the company from the inside out.

The Vanishing Grey Market Premium

One of the most telling indicators of pre-listing sentiment is the Grey Market Premium, or GMP. It’s an unofficial market where shares are traded before they are officially listed on the stock exchange. A high GMP often suggests a strong listing is expected. For WeWork India, the GMP has been on a rollercoaster, and it's not a fun one.

Just a few days ago, on October 1, the shares were fetching a premium of 2. 3%, trading at around Rs 663. However, this premium has been in a steady decline over the past six days. The latest update is quite stark: the GMP for WeWork India has reportedly fallen to nil. This means the shares are trading at their issue price of Rs 648 in the unlisted market, signaling a lack of demand and dimming hopes for a major listing day pop.

Under the Hood: Business & Financials

Despite the muted market response, the company's fundamentals tell a compelling story. From a news perspective, WeWork India operates a massive network of flexible workspaces, with 68 centers across 8 major cities. As of June 2025, they offered over 114,000 desks, covering about 7. Recent reports indicate that 35 million square feet. Their business model is asset-light; they lease large properties, design them into modern, collaborative workspaces, and then sublease them to a diverse clientele ranging from freelancers to large corporations.

The most impressive part is the financial turnaround. The company has moved from a significant loss to profitability. In FY23, their revenue was Rs 1,314 crore, which grew to Rs 1,949 crore in FY25. Even more striking, they turned a net loss of Rs 147 crore into a solid net profit of Rs 128 crore in FY25. This shows a strong focus on profitability and operational efficiency.

However, it's not all smooth sailing. A key risk for investors to consider is the "asset-liability mismatch. " WeWork India signs long-term lease agreements for its properties, typically spanning eight years or more. On the other hand, their contracts with clients are for much shorter durations. This creates a potential vulnerability if they can't maintain high occupancy rates to cover their long-term lease obligations.

What the Experts are Saying

So, with all these conflicting signals, what do the brokerage houses consider. The consensus seems to be cautiously optimistic, with most recommending a subscription, albeit with different caveats. AnandRathi, for instance, has a "Subscribe - Long Term" rating. They acknowledge the company has become EBIDTA positive but also mention that the IPO appears "fully priced. "

Nirmal Bang also gives a "Subscribe" recommendation. They believe WeWork is a leader in India's flexible workspace market and is well-positioned to benefit from the shift to hybrid work models. They find the valuation, at an EV/adj EBIDTA of 21. Analysts note that 3x of FY25 earnings, to be reasonable. On a similar note, Arihant Capital recommends subscribing "for listing gain," highlighting the company's healthy occupancy rates (over 80% in mature centers) and strong brand positioning. Current trends reveal that

Conclusion

The WeWork India IPO is a classic case of mixed signals. On one hand, you have a company with a strong brand, a significant footprint, and an impressive financial turnaround story that shows a clear path to profitability. A notable point here is The strong subscription from its own employees is also a powerful internal endorsement.

On the other hand, the market's reception has been cold. The slow subscription numbers from retail and institutional investors, combined with a GMP that has evaporated to zero, suggest that broader market sentiment is weak. The fact that it's a complete Offer for Sale, where promoters are cashing out, adds another layer for investors to consider. The next few days will be crucial in determining whether this slow start turns into a stronger finish before the IPO closes on October 7.