SEBI Clears WeWork India’s IPO; Embassy Group to Offload Majority Stake

15 Jul 2025 , 02:00 PM

WeWork India has received the green light from capital markets regulator SEBI to proceed with its market debut. The co-working space provider, backed by the Embassy Group, had initially filed its draft red herring prospectus (DRHP) in early February.

The offer will comprise a pure offer-for-sale (OFS), with no fresh issue of shares. As per the filing, the IPO will include 3.3 crore equity shares offloaded by Embassy Group and another 1.03 crore shares offered by 1 Ariel Way Tenant, a global affiliate of WeWork Inc.

While the company has yet to specify the amount it plans to raise, the listing is aimed at enhancing visibility and unlocking shareholder value. In its draft documents, the company stated that the primary objective of the offer is to achieve the benefits of listing the equity shares on the stock exchanges.

As per sources, Jitu Virwani, Chairman of the Embassy Group and promoter of WeWork India, confirmed the IPO was on track. “Yes, hopefully it will happen shortly. We’ve filed our DRHP,” he said.

Virwani, a real estate veteran, described the co-working business as a natural fit with Embassy’s larger real estate play. “It’s one of those businesses which, when we looked at it, was complementary to our traditional business,” he said. “Everything is cross-functional and is working for us.”

His son, Aditya Virwani, who serves as Managing Director at Embassy Group, added that co-working now represents a significant portion of India’s commercial real estate market. “About 27% of office absorption is happening in this space, so it really makes sense for Embassy to have a position here,” he said. Despite the challenges faced by the global WeWork brand, he noted that “the India story is really interesting. People should look out for what’s happening with WeWork India.”

WeWork India operates as the domestic franchise of the US-based shared workspace giant. It is run by CEO Karan Virwani, who also holds a stake in Embassy Group, along with his father Jitu Virwani. The IPO will be managed by JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM.

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