WeWork India shares make a muted stock market debut; stock lists on a flat note

Shares of WeWork India Management made a muted stock market debut on Friday, October 10, as the coworking space solutions player was settled at Rs 650 on NSE, a premium of 0.31 per cent over its issue price of Rs 648. Similarly, the stock kicked off its trading session with a discount of 0.23 per cent at Rs 646.50 on BSE.

Listing of WeWork has been on the expected lines, Ahead of debut, shares of WeWork India were commanding a no grey market premium (GMP) in the unofficial market, suggesting a weak listing for the investors. The GMP stood around Rs 5 during the bidding phase.

The IPO of WeWork India ran for subscription between October 03-07. It had offered its shares in the price band of Rs 615-648 per share with a lot size of 23 shares. The company raised a total of Rs 3,000 crore from its IPO, which was entirely an offer-for-sale (OFS) of up to 4,62,96,296 equity shares.

The issue was overall subscribed only 1.15 times, fetching a little more than 86,000 applications. The portion for qualified-institutional bidders (QIBs) was subscribed 1.79 times, while employees' quota was booked 1.87 times. The allocation for non-institutional investors (NIIs) and retail investors remained under-subscribed at 23 per cent and 61 per cent, respectively.

Incorporated in 2016, Bengaluru-based WeWork India Management is a flexible workspace operator in India. It provides a comprehensive array of flexible workspace solutions, encompassing custom-designed buildings, floors and offices, enterprise office suites, tailored managed offices, private offices, co-working spaces, and hybrid digital solutions.

Brokerage firms were mostly positive on the issue, but suggested it as a long-term bet. JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company and 360 ONE WAM were the book running lead managers for WeWork India IPO and MUFG Intime India served as the registrar of the issue.