WeWork India IPO Explained: Should You Pay ₹648 Per Share?

WeWork India Management Limited is India’s largest premium flexible workspace provider. If you’ve heard of people renting offices in shared spaces or companies moving into fully managed work floors, that’s the business WeWork runs. The company is coming out with an Initial Public Offering (IPO), priced at ₹615-₹648 per share, between October 3 and October 7, 2025, aiming to raise ₹3,000 crore.

But before you think about applying, it’s important to step back and understand exactly what this IPO means, where the money is going, and what the company’s strengths and risks are. In this blog, I’ll walk you through the business model, IPO details, industry outlook, strengths vs. risks, valuation, competitors, promoters’ selling, and more.

IPO Overview

• IPO Date: October 3 to October 7, 2025
• Total Issue Size: ₹3,000 crore
• Price Band: ₹615 to ₹648 per share
• Minimum Investment: ₹14,904
• Lot Size: 23 Shares
• Tentative Allotment Date: October 8, 2025
• Listing Date: October 10, 2025 (Tentative)

Business Model: How Does WeWork India Make Money?

At its simplest, WeWork India rents premium office buildings (called Grade A spaces-buildings with top-quality infrastructure) from landlords, spends money to design and outfit them, and then sub-leases this space to clients on flexible terms. The clients pay “membership fees” to use the space.

The company has 68 centers across 8 Indian cities, with 114,000+ desks and over 2,200 clients. The clients range from big corporations (like tech giants setting up offices), to startups and freelancers. It earns from:

• Private offices/suites – small enclosed work offices rented to startups or teams.
• Managed offices – fully custom-designed spaces for larger clients (like IT firms setting up Global Capability Centers or GCCs).
• Serviced floors and ancillary services – think cafeteria, internet, meeting rooms, and event spaces that bring in extra revenue.

The company’s unique selling point is its premium pricing ability. For every ₹100 it pays its landlords in rent, WeWork India is able to earn ₹270 from clients (a “revenue-to-rent multiple” of 2.7 vs industry average 1.9–2.5). In other words, it extracts more value per square foot, thanks to strong demand in top cities like Bengaluru and Mumbai.

Objectives of the IPO

Here’s the big thing you should know: WeWork India’s IPO is not bringing any fresh money into the company. It is a pure Offer for Sale (OFS) of 46.3 million shares worth ₹3,000 crore. That means:

• Selling shareholders are cashing out: The promoters and investors (Embassy Buildcon LLP and WeWork’s global affiliate 1 Ariel Way Tenant Ltd.) are selling part of their stake.
• The company itself gets no funds: Since no “new shares” are issued, WeWork India won’t gain money from this IPO to open new centers, pay down debt, or grow.
• Main objective is listing: The purpose here is to give investors an “exit route” and to list the shares on NSE and BSE. Listing creates liquidity (existing shareholders can sell shares in the future on the stock market).

So, if you’re wondering, “Will IPO money be used to expand WeWork India?” - the answer is no, not from this offer.

Strengths: What Works in WeWork India’s Favour?

• Market leader by revenue: With ₹2,024 crore total income in FY25, WeWork India is ahead of Awfis (₹1,207 crore) and Smartworks (₹1,374 crore). Being No.1 gives it pricing power.
• Strong profitability at the center level: Once a workspace is “mature” (12+ months old), it earns operating margins of 40%+. At a company level, EBITDA margin is 63% in FY25. This shows that once centers are running, they are highly efficient.
• Early breakeven: A new center becomes profitable at just 56% occupancy, and reaches that in 4-6 months. So centers don’t burn cash for very long.
• Premium locations: 94% of the portfolio is in Grade A buildings in prime clusters of Tier 1 cities. This attracts top-paying clients like MNCs and GCCs.
• Diversified client base: No single client accounts for more than 10% of revenue. This reduces the risk of one big client walking away and hurting earnings.
• Reduced debt: Borrowings fell from ₹626 crore in FY24 to ₹310 crore in FY25. Lower debt means less interest burden and better net profits.

Risks: What Could Go Wrong?

• IPO money doesn’t go to the company: Since it’s an OFS, none of the ₹3,000 crore raised will help WeWork India grow or reduce loans. Future expansions must fund themselves.
• Occupancy drop: Occupancy slipped from 83.8% in FY23 to 76.5% in June 2025. To put it simply, out of 100 desks, around 24 are empty. Falling occupancy directly squeezes profits.
• Still not consistent in profits: Yes, FY25 showed ₹128 crore net profit, but FY23 and FY24 had losses of ₹147 crore and ₹136 crore. Even Q1 FY26 again showed a ₹14 crore net loss. Volatility raises concerns.
• Dependence on Bengaluru & Mumbai: These two cities contribute 66% of revenue. If demand slows in just these markets, business could take a strong hit.
• Reliance on WeWork brand license: It doesn’t own the WeWork brand-it just licenses it. If WeWork International pulls out, the Indian arm loses its identity overnight.
• Audit and compliance concerns: Past issues flagged by auditors-like weak financial controls and missing audit trails-could worry cautious investors.

For detailed information, visit WeWork India’s IPO page.

Peer Comparison: How Does WeWork Stack Up?

The company competes with Awfis, Smartworks, and IndiQube.

• Revenue: WeWork is ahead (₹2,024 crore in FY25 vs Smartworks ₹1,409.7 crore and Awfis ₹1,260.8 crore). For every ₹100 competitors make, WeWork makes ₹140+.
• Profitability: EBITDA margin at 63.4%, just above Smartworks (~62%). Awfis lags far behind at ~33%. It shows WeWork’s superior efficiency.
• Earnings per share (EPS): WeWork is positive at ₹9.87 EPS in FY25. Smartworks and IndiQube were loss-making.
• Market cap vs peers: At ₹8,997 crore valuation, it’s priced above Awfis, which trades at lower multiples.
• Return on Net Worth (RoNW): WeWork’s 63.8% vs Awfis' 14.8%. Higher means it’s using shareholder money more effectively.

Source: RHP, internal calculation

WeWork’s Financial Performance

• Revenue growth: ₹1,423 crore in FY23 → ₹2,024 crore in FY25. That’s almost 19% yearly growth.
• Profitability turnaround: From a loss of ₹136 crore in FY24 to a profit of ₹128 crore in FY25, mainly due to cost efficiencies and tax credits.
• Margins: Net margin turned positive at 6.3% in FY25 (up from -7.8% in FY24).
• Debt: Down from ₹626 crore to ₹310 crore in FY25. Less borrowing = healthier balance sheet.
• But caution: The profit story is fragile since Q1 FY26 is already back to loss-making.

IPO Valuation: Is it Expensive?

At the upper band (₹648 per share), the company’s market cap = ~₹9,000 crore.

Its P/E ratio = 65.6x FY25 earnings. That means for every ₹1 profit, investors are paying ₹65. Peers trade at an average of 59.3x. So this IPO is slightly on the expensive side, especially given the history of losses and dependence on just two markets.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind WeWork India

• Jitendra Virwani (Chairman, Embassy Group): Veteran real estate developer with over 28 years of experience. Runs Embassy Group, which manages 85+ million sq. ft. of commercial space.
• Karan Virwani (CEO, WeWork India): The young face of the brand, credited with scaling WeWork India quickly into Tier 1 markets. Featured in Forbes 30 under 30 Asia 2019.
• Clifford Noel Lobo (CFO): Chartered Accountant with experience in ESPN Digital Media. Handles finance and compliance.

Together, this team brings a strong mix of real estate expertise from Embassy and a brand-growth mindset from WeWork Global.

Who’s Making Money from the IPO?

This IPO is 100% an Offer for Sale (OFS)-meaning the company itself gets zero money. The entire ₹3,000 crore will go to two existing shareholders:

Embassy Buildcon LLP (Promoter Selling Shareholder):

• Selling 3.54 crore shares (about 76.5% of the IPO).
• Expected to cash out ₹2,294 crore.
• This is the corporate arm of the Embassy Group, which has backed WeWork India since the beginning.
• Their average cost per share is ₹161.83, so they’re making a 4x return on their investment.

1 Ariel Way Tenant Limited (Investor Selling Shareholder):

• Selling 1.09 crore shares (about 23.5% of the IPO).
• Expected to cash out ₹706 crore.
• This is a global affiliate of WeWork International.
• Their average cost is just ₹65.88 per share, meaning they’re making a nearly 10x return.

So, this IPO is more about existing investors exiting than funding future growth. That’s a key point for investors to remember.

Industry Outlook: Is This a Good Time to Invest?

The flexible workspace industry in India is growing fast—and here’s why:

• Market size: The sector is valued at ₹53,121 crore ($5.99 billion) in 2025 and is expected to grow to ₹97,680 crore ($11.39 billion) by 2030. That’s a 21–22% yearly growth rate.
• Demand shift: Companies no longer want to lock into 10-year office leases. They want flexible, pay-as-you-go spaces, especially for teams like Global Capability Centres (GCCs).
• Current share of office market: Flexible workspaces now make up 14% of total office leasing in India. That’s up from just 5% a few years ago.
• Future growth: The total flexible workspace area is expected to grow from 96 million sq. ft. in 2025 to 280-300 million sq. ft. by 2027.

So, the big picture is positive. More companies are choosing flexible offices, and WeWork India is the market leader in this space.

But remember: growth doesn’t guarantee profits. The market is crowded (over 500 operators), and competition is fierce. Only the strongest players will survive.

Analyst View

So, where does all this leave us?

On one side, WeWork India is a leader in its segment, showing top-line growth, early breakeven centers, premium pricing ability, and the hybrid work trend clearly in its favor.

On the other hand, we must weigh that IPO money doesn’t grow the company, occupancy is slipping, and the valuation is at a premium P/E of 65x.

If you believe in India’s shift towards flexible, premium office spaces and the rise of GCCs in Tier 1 cities, this IPO might look attractive. But if you’re cautious about high valuation and inconsistent profits, you may want to watch it closely before jumping in.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: WeWork India's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.