WeWork India shares dropped as much as 5.2 per cent on their stock market debut on Friday, valuing the flexible workspace operator at Rs 82.32 billion, as investors remained cautious over its lofty valuation and corporate governance risks.
The stock last traded at Rs 634.4, below its offer price of Rs 648.
The company’s listing comes amid a flurry of activity in India’s primary markets. LG Electronics India’s IPO was oversubscribed 54.02 times on Thursday, making it the most in-demand billion-dollar float in nearly 20 years. Tata Capital also drew strong interest, attracting USD 1.24 billion in bids and a subscription rate of 1.95 times.
In contrast, WeWork India's IPO saw more muted interest, subscribed just 1.15 times and driven largely by institutional investors. The company raised about USD 213.7 million.
However, the challenges for WeWork India go beyond a competitive IPO calendar. Analysts and corporate governance firm InGovern have flagged red flags over its fragile financials, negative cash flow, high lease liabilities, and the lack of fresh capital, questioning its ability to sustain operations and fund growth.
WeWork India licenses its brand from the now-bankrupt U.S.-based WeWork Global and operates flexible office spaces in eight major Indian cities.
It faces stiff competition from leaner, homegrown rivals. Smartworks Coworking Spaces has gained 35 per cent since listing in July and is valued at Rs 68.9 billion, while IndiQube Spaces has rebounded 4 per cent above its listing price after an initial slump, with a current market cap of Rs 47.6 billion.
WeWork India’s subdued debut comes during a landmark year for IPOs in India. More than 240 large and mid-sized firms have raised USD 10.5 billion in the first nine months of 2025, making India the world’s third-largest IPO market. |
