IPO Note : WeWork India Ltd by Nirmal Bang Ltd
BACKGROUND
Launched in 2017, WeWork India Management (WWIM) is a leading premium flexible workspace operator in India, backed by Embassy Group. Co leases Grade A office spaces, designs, builds, and operates them as modern flexible workspaces suitable for enterprises, SMEs, startups, and individuals. Co operates across India’s major office hubs, including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. It’s portfolio includes 114,077 desks across 68 operational centres, covering a total leasable area of 7.67 mn sq ft. and has been the largest operator in India in terms of total revenues.
Objects and Details of the Issue:
The issue is a completely of offer for sale 4.63 cr shares aggregating to Rs. 3000 cr.
Investment Rationale:
1. Strong brand recognition in India and international presence.
2. Leadership in a rapidly growing market.
3. Backed by the Embassy Group and relationship with WeWork Global.
4. Presence in Grade A properties in top-tier micro markets and strong relationships with top developers.
Valuation and Recommendation:-
WeWork is a leader in India’s premium flexible workspace market with robust growth metrics. The company is strategically positioned as a premium market leader to capitalize on the sustained shift towards hybrid work models in India. Revenue/adj EBITDA has grown steadily at a CAGR 22% /48% between FY23–FY25 and issue is available at a EV/adj EBIDTA of 21.3x of FY25 earnings which we believe is reasonable and recommend ‘Subscribe’ to the issue considering India’s strong demand for flexible offices and WeWork’s brand leadership.
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SEBI Registration number is INH00000176
