The capital markets regulator, SEBI, has paused the initial public offering (IPO) of WeWork India and returned the offer document submitted by Star AgriwareHousing. In another development, Indira IVF Hospital has withdrawn its draft IPO documents.
Indira IVF Hospital, a fertility clinic chain, had submitted its IPO papers using the confidential pre-filing route. This process allows a company to keep details under the Draft Red Herring Prospectus (DRHP) confidential. However, using this method does not ensure the company will proceed with the IPO.
WeWork India, which filed its DRHP in February, intended to issue 4.3 crore shares via the Offer for Sale (OFS) route. According to the DRHP, Embassy Buildcon proposed to sell up to 3.3 crore shares, and Ariel Way Tenant, through which WeWork Inc. holds a stake in the Indian entity, planned to offer approximately 1 crore shares.
Embassy Group, established in 2017, owns a 72.4% stake in WeWork India, while Ariel Way Tenant holds 22.28%. WeWork India benefits from being part of WeWork Global, an organization with about 600 wholly owned and licensed locations in 35 countries.
By March 2024, WeWork India reported the highest EBITDA among its benchmarked competitors, as stated in the DRHP. For fiscal year 2024, its operating income grew by 26%, reaching Rs 1,661.6 crore, compared to Rs 1,314 crore in the prior year. The operating profit before depreciation, interest, and tax improved to 63.1% in FY24 from 60.7% the previous year. During the first half of the calendar year 2024, WeWork India achieved an average revenue-to-rent multiple of 2.7, exceeding the industry average, according to the DRHP. Currently, 93% of its portfolio, by area, consists of Grade-A developments, with over 85% of its stock located in 23 strategic clusters for flexible workspaces nationwide.
Separately, SEBI returned the draft IPO documents of Agriwarehousing and Collateral Management Ltd, a technology-driven agricultural services firm, on March 19. As per the draft papers submitted in December, the company’s proposed IPO includes a fresh issue of equity shares totaling up to Rs 450 crore and an OFS component consisting of 2.69 crore equity shares by the promoters and an investor.