As per the DRHP, Embassy Buildcon plans to sell up to 33.46 million shares, while Ariel Way Tenant, through which WeWork Inc holds stake in the Indian company, is seeking to offer about 10.3 million shares.
WeWork India will not receive any proceeds.
Founded in 2017, the Embassy Group holds a 72.4% stake in WeWork India, while Ariel Way Tenant holds 22.28%.
The company benefits from being part of WeWork Global, a flexible office space provider with about 600 wholly owned and licensed locations in 35 countries.
JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company and 360 ONE WAM are the book running lead managers for the issue.As of March 2024, WeWork India recorded the highest Ebitda among benchmarked operators, the company said in the DRHP. In fiscal 2024, its operating income rose 26% to ‘1,661.6 crore from ‘1,314 crore the previous year. Operating profit before depreciation, interest and tax improved to 63.1% in FY24 from 60.7%, it said.As of the first half of the calendar year 2024, WeWork India achieved an average revenue-to-rent multiple of 2.7, surpassing the industry average, as per the DRHP. Currently, 93% of its portfolio (by area) consists of Grade-A developments, with over 85% of its stock located in 23 key clusters identified for flexible workspaces across the country, the document said.
Earlier this month, the firm raised ₹501 crore via a rights issue to Embassy Buildcon. The proceeds were used to redeem ₹450 crore in non-convertible debentures, improving leverage and debt protection metrics.
As of December 2024, the firm operated about 100,000 desks across 63 locations in eight cities: Bengaluru, Mumbai, Delhi, Gurgaon, Noida, Pune, Hyderabad and Chennai. WeWork’s desk capacity has increased 20% year-on-year in FY24 and by 10% year-on-year in the first half of FY25, it said. Occupancy levels remained strong at 75% as of September 2024, the filing said.
Global brands such as Amazon Web Services, JP Morgan, Warner Bros., Discovery, Deutsche Telekom and Grant Thornton are among its existing tenants.
