WeWork India’s stock faced fresh selling pressure following a bulk sale by global brokerage CLSA, which offloaded 8.4 lakh shares worth ₹52 crore. Despite a modest premium listing, the stock price has declined nearly 7% since its debut amid muted retail participation and ownership disputes.
WeWork India Share Sale by CLSA
- CLSA sold 8.4 lakh shares of WeWork India at ₹618.55 each, totalling ₹52 crore.
- The sale triggered a further decline in WeWork India’s share price.
- Shares were initially listed at ₹650 on the NSE, a 0.31% premium on debut.
- The current trading price has dropped to around ₹606 on the BSE.
IPO Subscription and Market Response
- The IPO, an offer-for-sale (OFS) by existing shareholders, was subscribed 1.15 times.
- Institutional investors largely supported the listing; retail participation remained weak.
- The issue price band was ₹615-648 per share.
- WeWork India’s market debut showed limited enthusiasm, with shares falling below the IPO price within days.
Financial Performance and Operational Footprint
- WeWork India reported revenue growth from ₹1,314 crore in FY23 to ₹1,949 crore in FY25.
- The company swung from a ₹147-crore loss to a ₹128-crore profit.
- Operates about 77 lakh sq ft across major Tier 1 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai.
- Manages 70 lakh sq ft operational space with a desk capacity of 1.03 lakh.
Legal and Ownership Issues
- Investor Vinay Bansal filed a petition in the Bombay High Court alleging misleading disclosures and concealment of a criminal chargesheet against promoters.
- The petition claims that WeWork India’s prospectus had incorrect information on brand ownership and financial position.
The FlexInsights Take
WeWork India’s IPO and market debut highlight ongoing challenges in the coworking sector’s public market acceptance, especially in India’s emerging environment. Despite operational growth and profitability turnaround, retail investor scepticism and management controversies weigh heavily on the stock price. The bulk sale by CLSA further signals cautious institutional sentiment. Investors should watch legal developments and market confidence carefully, as these factors will heavily influence WeWork India’s future equity performance and sector outlook.
