“WeWork India IPO Analysis | Apply or Avoid? | Pros, Cons & Comparison” video (based on available information and public sources):
Overview & IPO Basics
*The analyzes WeWork India’s upcoming IPO, discussing whether it’s worth subscribing to or not.
- The IPO is structured as an Offer For Sale (OFS) — meaning no fresh shares are issued, and the company won’t receive proceeds. All funds go to existing shareholders.
- Price band is ₹615 to ₹648 per share.
- The IPO aims to raise up to ₹3,000 crore via the sale of ~46.2 million shares. (The Economic Times)
- The promoter’s stake will dilute — promoter holdings drop from ~73.6% to ~48.1%. (The Times of India)
- IPO opens for public subscription October 3, 2025, and listing is expected around October 10, 2025. (The Economic Times)
Business Model & Operations
- WeWork India is a flexible workspace operator: it leases Grade-A office spaces (from landlords), outfits them, and then sub-leases them to clients on flexible terms (private offices, managed offices, serviced floors, coworking). (INDmoney)
- The company also earns from ancillary services — meeting rooms, event spaces, virtual office, digital products etc. (mint)
- As of June/2025, it operates ~68 centers across 8 cities, with desk capacity in the order of ~1 lakh desks. (INDmoney)
- Their revenue-to-rent multiple is reported at ~2.7 for FY25, higher than industry average (1.9–2.5) — meaning for each ₹1 in rent paid, they extract ₹2.7 in revenue. (INDmoney)
Strengths Highlighted
- Market leadership & brand: As a prominent player in the flexible workspace segment, WeWork India enjoys brand recognition and scale advantage. (INDmoney)
- High operational efficiency in matured centers**: Once a center matures, margins can be strong. (INDmoney)
- Early breakeven threshold**: New centers reportedly become cash-flow positive at ~56% occupancy, which is a modest threshold. (INDmoney)
- Prime location portfolio**: Most centers are in Grade-A buildings in top micro-markets, which attract premium clients. (INDmoney)
- Diversified client base**: No single client contributes too large a share of revenue, reducing concentration risk. (INDmoney)
- Reduced debt burden**: Their borrowings have decreased over recent years, improving financial health. (INDmoney)
Risks & Challenges
- No capital infusion to the company Since this is purely an OFS, the company will not receive any capital for expansion, debt repayment, or working capital from this IPO. (INDmoney)
- Occupancy decline**: Occupancy fell from ~83.8% (FY23) to ~76.5% in mid-2025, indicating potential demand weakness. (Stocktwits)
- Volatile profitability**: The company had net losses in FY23 and FY24, and earned a modest net profit in FY25 (~₹128 crore). (INDmoney)
- Geographic concentration**: Bengaluru & Mumbai together contribute a large share of revenue — weakening in these markets can hurt performance. (mint)
- Dependence on the WeWork brand license: The company does not own the “WeWork” name — if the parent/licensor (WeWork global) faces problems, that could impact the Indian entity’s license or perception. (INDmoney)
- High valuation risk**: At the upper price band, the implied P/E is quite high (~60–65×), which puts pressure on future growth to justify the valuation. (Stocktwits)
- Competitive landscape & saturation risk: The flexible workspace sector in India has many players, and aggressive competition could affect margins and client retention. (Moneycontrol)
Financials & Valuation
- Revenue growth: From ~₹1,422.8 crore in FY23 to ~₹2,024 crore in FY25. (INDmoney)
- EBITDA / margins: Adjusted EBITDA margin in FY25 is ~21.6% (some sources say maturity centers do much higher margins) (Stocktwits)
- Net profit: In FY25, it recorded ~₹128 crore of net profit (turnaround from previous losses). (INDmoney)
- Valuation multiples:
- At ₹648 per share, the implied P/E is ~60.6x using trailing EPS. (Stocktwits)
- P/B ratios are also very high (in the 40–45x range in some projections). (Stocktwits)
IPO Reception & Market Sentiment
- The initial subscription response was muted. On Day 1, the IPO was ~0.02× subscribed overall. (Moneycontrol)
- Retail participation was better comparatively (~0.10×), and the reserved employee portion ~0.60×. (Moneycontrol)
- Grey market premium (GMP) is ~₹15 (i.e. ~2.3%) above the upper band of ₹648, suggesting a modest listing gain expectation (~2–3%). (Stocktwits)
- Some analysts caution that due to high valuation and weak early demand, the listing might not see a big jump.
Takeaway & Recommendation (From Video’s Perspective)
- The presenter likely leans toward caution: while WeWork India has strong brand, growth potential, and scale, the fact that the IPO doesn’t inject capital into the business, plus a high valuation and mixed financial history, makes it risky.
- For investors, the video probably suggests: if you have a medium-to-long-term horizon and believe in the growth of flexible office spaces in India, it could be considered, but don’t expect dramatic short-term returns.
- The decision to apply or avoid depends on one’s risk appetite: high valuation + dependence on continuing growth + structural risks = caution.