WeWork India Management Ltd.'s initial public offering (IPO) has concluded with a lukewarm response from investors, setting the stage for its upcoming listing on the stock exchanges.

Subscription Details

The ₹3,000 crore IPO, which closed on October 7, saw an overall subscription of 1.15 times. Here's a breakdown of the subscription rates across different investor categories:

The company received bids for 1,06,96,564 shares against the 2,54,89,748 shares on offer.

Key Dates

• IPO Closure: October 7
• Share Allotment: October 8
• Stock Listing: October 10

Allotment Status

Investors can check their allotment status through the following channels:

• BSE website
• NSE website
• Registrar MUFG Intime India's website

Company Overview

WeWork India operates in the flexible workspace solutions sector, offering:

• Co-working spaces
• Private offices
• Managed offices

The company currently manages:

• 68 centers
• 1.14 lakh desk capacity
• Presence in 8 Indian cities

Market Implications

The mixed response to WeWork India's IPO, particularly the undersubscription in the non-institutional and retail segments, may reflect investor caution in the current market environment. The strong employee participation, however, suggests internal confidence in the company's prospects.

The upcoming listing on October 10 will be closely watched by market participants to gauge investor sentiment towards the flexible workspace sector in India, especially in the post-pandemic work environment where hybrid and flexible work models have gained prominence.

As the company prepares for its market debut, investors and industry observers will be keen to see how WeWork India's business model and growth strategy resonate with public market investors in the long term.

WeWork India's Initial Public Offering (IPO) faced a lukewarm reception as it entered its second day of subscription. The Rs 3,000-crore IPO, which aims to raise capital for the co-working space provider, has seen a subdued response from investors thus far.

Subscription Details

The IPO, which opened on October 5, received bids for only 11.12 lakh shares out of the 2.54 crore shares on offer by the end of Day 1, representing a mere 4% subscription rate. Here's a breakdown of the subscription status:

IPO Specifics

• Price Band: Rs 615-648 per share
• Subscription Period: Closes on October 7
• Expected Listing Date: October 10
• Listing Venues: National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)

Market Sentiment

The Grey Market Premium (GMP) for WeWork India shares has seen a notable decline:

• Initial GMP: 2.76%
• Current GMP: 0.77%

This drop in GMP suggests waning enthusiasm among investors in the unofficial market.

Company Overview

WeWork India has established a significant presence in the country's co-working space sector:

• Operational Footprint: 68 centers across 8 cities
• Total Area: 7.35 million sq ft
• Key Clients: JP Morgan, Amazon, Uber

Financial Performance

WeWork India has shown promising financial growth:

Valuation Insights

The IPO is currently valued at 65 times FY25 earnings, which appears to be at a premium compared to its peer:

• WeWork India: 65x P/E ratio
• Awfis Space (competitor): 58x P/E ratio

Concluding Thoughts

The tepid response to WeWork India's IPO, despite its projected profitability, suggests that investors may be approaching this offering with caution. The premium valuation compared to its peer could be a factor influencing investor sentiment. As the subscription window remains open until October 7, it will be crucial to monitor how investor interest evolves in the coming days.

Investors considering this IPO should carefully evaluate the company's growth prospects, the competitive landscape in the co-working sector, and the overall market conditions before making an investment decision.