IPO Details
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Schedule of Wework India Management Ltd IPO
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About Wework India Management Ltd IPO
The IPO of Wework India Management Ltd has no fresh issue. It consists of an offer for sale of up to 43,753,952 equity shares bearing a face value of ₹ 10 each. It’s a 100% book-built issue.
Objectives of Wework India Management Ltd IPO
The company will not receive any proceeds from the offer and all the offer proceeds will be received by the selling shareholders after deduction of offer related expenses and relevant taxes thereon, to be borne by the selling shareholders.
Wework India Management Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | NA |
Offer for Sale | Up to 43,753,952 equity shares |
EPS for FY 24 in ₹ | (10.73) |
Wework India Management Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the offer |
Non-institutional Investors | Not more than 15% of the offer |
Retail Individual Investors | Not more than 10% of the offer |
Industry Outlook
Led by a steady space take-up in CY2023, the office market in India registered the second-peak gross absorption figures at 60.6 million sq. ft, representing a y-o-y growth of 9% vis-à-vis the previous year and an increase of approximately 53% over CY2021. Supported by domestic growth, improved mobility, and leasing activity by both domestic and global corporates, the office sector in India had an increase in absorption during H1 CY2024.
The total flexible workspace stock ranging between 62-64 Mn sq. ft.by the end of CY2023, is forecasted to grow to approximately 124-126 Mn sq. ft. across Tier 1 cities by end of CY2027 at a CAGR of 18 – 19%.
Company Information
Launched in 2017, Wework India Management Ltd is a leading premium flexible workspace operator in India and has been the largest operator by total revenue in the past three Fiscals, according to the CBRE Report.
The company is a category-defining, aspirational brand in India, with a loyal customer base, according to AGR, and have played a significant role in the growth of the flexible workspace sector in India and been a key contributor for the evolution of flexible workspace products and services, according to the CBRE Report.
As of September 30, 2024, its portfolio comprised 94,440 desks across 59 operational centres with an aggregate leasable area for operational centres of 6.48 million square feet.
Wework India Management Ltd Strengths
Category-defining, aspirational brand, with strong international branding
Wework India Management Ltd is a category-defining, aspirational brand in India, with a loyal customer base, according to AGR. As a pioneer in the flexible workspace sector, the company consistently recorded the highest search volume throughout October 2023 to December 2024 (being 4 times that of its closest competitor in the period of October 2023 to September 2024, and 3.5 times its closest competitor in 2024), which underscores its strong brand recognition and leadership in India, according to AGR.
Leadership in a rapidly growing market
The company is a leading premium flexible workspace operator in India and has been the largest operator by total revenue in the last three Fiscals, according to the CBRE Report. As a premium flexible workspace operator, its average portfolio level revenue to rent multiple of 2.7 in the six months ended June 30, 2024 exceeded the industry average range of 1.9 to 2.5, according to the CBRE Report.
Backed by the Embassy Group, one of India’s top developers
The company is majority owned and promoted by Embassy Group, a leading real estate developer in India, according to the CBRE Report. Embassy Group has 30 years of experience in the real estate development business and, according to the CBRE Report, has a portfolio of more than 85 million square feet of real estate in India. It’s the sponsor of Embassy REIT, India’s first REIT and Asia’s largest office REIT by leasable area.
Presence in Grade A properties in top-tier micro markets and strong relationships with top developers
The company has established multi-asset relationships with various prominent developers across major Tier 1 cities, according to the CBRE Report. It offers high quality workspaces by designing, building and operating them to global standards. As of June 30, 2024, Grade A properties accounted for approximately 93% of its portfolio, or 5.87 million square feet, according to the CBRE Report.
Risks of Wework India Management Ltd
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Geographical concentration risk in Bengaluru and Mumbai: During the six months ended September 30, 2024, and Fiscals 2024, 2023, 2022, the company derived 70.64%, 68.80%, 71.04% and 71.88% of its net membership fees, respectively from its centres located in Bengaluru and Mumbai. Any adverse developments affecting such locations and centres could have an adverse effect on its business, results of operations and financial condition.
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Lease agreements and their potential impact on business operations: The company has entered into long-term fixed cost lease agreements with its landlords for an aggregate leasable area for operational centres of 6.17 million square feet across 51 of its 59 operational centres in eight cities, as at September 30, 2024. If it’s unable to pay the lease rentals to its landlords and its landlords refuse to renew its lease agreements or its centres suffer physical damage, its business, results of operations, cash flows and profitability may be adversely impacted.
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Dependence on top clients and potential business potential: In the six months ended September 30, 2024 and Fiscals 2024, 2023 and 2022, the company derived 25.21%, 24.90%, 25.09% and 36.68% of its net membership fees from its top ten clients. The loss of one or more of its top clients could have an adverse effect on its business and results of operations.
All Financial Information about Wework India Management
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Name of Company | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV per Equity Share (in ₹) |
|---|---|---|---|---|
Wework India Management Ltd | 1665.136 | (10.73) | NA | (34.55) |
Awfis Space Solutions Ltd | 848.819 | (2.79) | (6.99) | 39.87 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Managers
- Registrar: MUFG Intime India Private Ltd, formerly Link Intime India Pvt Ltd
- Book Running Lead Managers: J M Financial Ltd, ICICI Securities Ltd, Jefferies India Pvt Ltd, Kotak Mahindra Capital Company Ltd, 360 One WAM Ltd
Business Model
Wework India Management Ltd offers a comprehensive mix of flexible workspace solutions, including a mix of custom designed buildings, floors and offices, enterprise office suites, customised managed offices, private offices, co-working spaces, and hybrid digital solutions. Its value-added services include customisation of office spaces, parking, event spaces, advertising, food and beverage services and office infrastructure services.
Company Growth Trajectory
The company’s revenue from operations increased by 67.58% from ₹784.435 crore in Fiscal 2022 to ₹1314.518 crore in Fiscal 2023 and by an additional 26.67% to ₹1665.136 crore in Fiscal 2024. Its adjusted EBITDA margin grew from (15.59) % to 20.40% from Fiscal 2022 to 2024.
Wework India Management Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 1737.164 | 1422.774 | 836.667 |
Profit/ (loss) for the Period/ Year (in ₹ crore) | (135.773) | (146.810) | (642.998) |
EPS in ₹ | (10.73) | (11.52) | (50.79) |
Wework India Management Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit/ (loss) for the Period/ Year (in ₹ crore) | (135.773) | (146.810) | (642.998) |
Net Cash Generated from Operating Activities (in ₹ crore) | 1161.850 | 941.896 | 415.640 |
Net Cash Used in Investing Activities (in ₹ crore) | (393.412) | (386.472) | (6.142) |
Net Cash Used in Financing Activities (in ₹ crore) | (797.318) | (533.756) | (601.764) |
Total Cash and Cash Equivalent (in ₹ crore) | 21.058 | 49.938 | 28.270 |
How to Check Allotment Status of Wework India Management Ltd IPO?
Visit the Registrar’s Website
Visit the official website of MUFG Intime India Private Ltd and choose ‘Public Issues’ from ‘Investor Services’ dropdown. Choose the company name from the ‘Select Company’ dropdown. Enter either your PAN, application number, DP client ID, etc and click on ‘Submit’ to check status.
Check on Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Wework India Management Ltd' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search’ to know allotment status of Wework India Management Ltd IPO
Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use it to check Wework India Management Ltd IPO allotment status. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit' to know the allotment status of Wework India Management Ltd IPO
How to Apply for Wework India Management Ltd IPO?
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Wework India Management Ltd IPO FAQs
What is the Wework India Management Ltd IPO?
The IPO of Wework India Management Ltd has no fresh issue. It consists only of an offer for sale of up to 43,753,952 equity shares.
When will the IPO of Wework India Management Ltd go live?
The IPO dates are yet to be announced.
Who is the MD and CEO of Wework India Management Ltd?
Karan Virwani is the MD and CEO of Wework India Management Ltd.
What is the lot size of the Wework India Management Ltd IPO?
The lot size of the IPO is yet to be decided.
From where can I read more about the IPO of Wework India Management Ltd?
You can read more about the IPO of Wework India Management Ltd from the company’s draft red herring prospectus here.
