WeWork India's IPO Sees Retail Surge, Institutional Weakness
WeWork India's Initial Public Offering (IPO) witnessed a surge in retail investor participation on Day 2, with their quota subscribed 26%, up from 14% on Day 1. However, institutional demand remained weak, with the initial subscription from institutions being only 2%.
The employees' quota was oversubscribed at 1.2X and later at 1.4X on Day 2, indicating strong internal confidence in the company. WeWork India also reported a significant reduction in its net loss, trimming it by 51.5% to INR 14.1 Cr in Q1 FY26.
Institutions such as Embassy Buildcon LLP and 1 Ariel Way Tenant Ltd. sold part of their stakes through the Offer for Sale (OFS) mechanism. However, overall institutional subscription remained low at only about 2%. Non-institutional investors (NIIs) and qualified institutional buyers (QIBs) also showed negligible interest on Day 2, with their portions subscribed 4% and 2%, respectively.
WeWork India's IPO subscription rose to 13% on Day 2, up from 4% on Day 1, with the company set to be valued at INR 8,684 Cr (about $978.6 Mn) at the top end of the price band. Despite the weak institutional demand, the strong retail participation and reduced net loss indicate potential investor interest in the company's future prospects.
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