WeWork's India Initial Public Offering (IPO) Regains Momentum
In the rapidly evolving world of Real Estate Tech, two significant players are making headlines - DevX, a coworking space company based in Ahmedabad, and WeWork India, the largest coworking space provider in India by revenue.
The Securities and Exchange Board of India (SEBI) has lifted the abeyance on the IPO papers of WeWork India, marking a significant step towards its public offering. The decision comes after SEBI sought clarifications or additional disclosures from WeWork India, primarily due to a delay in exchange disclosure by Embassy Office Parks, a company backed by WeWork India's parent company, Embassy Group.
The IPO comprises an offer for sale (OFS) of up to about 43.7 million equity shares, with the promoter Embassy Buildcon LLP planning to sell 33.4 million shares and investor 1 Ariel Way Tenant selling about 10.3 million shares, potentially raising around Rs 3,000–4,000 crore. The IPO is expected to open for subscriptions on July 10 and conclude on July 14, with an OFS component of up to 33.79 lakh shares.
Meanwhile, DevX, founded in 2017, is preparing for its own future plans. However, details about DevX's IPO, such as the number of shares or book-running lead managers, have not been disclosed yet. The SEBI is also reviewing IPO draft papers of DevX, along with WeWork India, ensuring transparency and proper disclosure before public offering approval.
Karan Virwani, one of the founders of DevX, leads the company from its headquarters in Bengaluru. DevX operates in the coworking space sector, contributing to the growing trend of flexible workspaces in India.
On the other hand, WeWork India's operating revenue zoomed 27% year-on-year to INR 1,665.1 crore in the fiscal year 2024, while its losses shrank by about 8% year-on-year to INR 135.8 crore. The company's IPO delay was primarily due to a case involving the ousted CEO Aravind Maiya, which raised concerns and led SEBI to pause the IPO process for further scrutiny.
The IPO of WeWork India was initially put in abeyance by SEBI in March 2025 after the company submitted its Draft Red Herring Prospectus (DRHP) in February. The regulator appears to have sought clarifications or additional disclosures relating to the disclosure issues by Embassy Office Parks before allowing the IPO to proceed.
In Mumbai, Awfis was the first coworking space startup to get listed on the bourses last year, and Gurugram-based Smartworks is set to become the second such entity to get listed. The IPO of these companies underscores the growing interest and potential of the coworking space sector in India.
As both DevX and WeWork India navigate their respective IPO journeys, they are contributing to the dynamic landscape of India's Real Estate Tech sector, offering innovative solutions and fostering growth in the flexible workspace industry.
Investors and financiers should closely watch the upcoming initial public offerings (IPOs) of DevX and WeWork India, as both companies are significant players in the Real Estate Tech sector and the coworking space business. With the SEBI carefully reviewing IPO draft papers to ensure transparency and proper disclosure, these ventures may provide exciting investing opportunities within the growing trend of real-estate business and flexible workspaces in India.
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