By Business Desk,News18,Varun Yadav

Copyright news18

Proxy advisory firm InGovern has flagged several concerns over WeWork India’s IPO. According to a report by Moneycontrol, InGovern founder Shriram Subramanian said the IPO’s structure — a full offer for sale (OFS) with no fresh capital infusion — along with its pre-listing conditions, raises doubts about promoter intent, financial health, and governance oversight.

The Rs 3,000-crore IPO included up to 4.63 crore shares priced at Rs 615–648, with nearly 45 percent allotted to anchor investors, helping raise Rs 1,348 crore. Since the issue was entirely an OFS, all proceeds will go to existing shareholders — primarily Embassy Buildcon LLP and WeWork International — instead of WeWork India. As Moneycontrol noted, subscription from non-anchor investors stayed weak during the book-building process, reflecting market scepticism around corporate governance risks.

On Day 3 bidding, the issue was subscribed fully to 1.05 times. The QIB portion was subscribed 1.79 times, while NII portion saw a subscription of 0.23x. Meanwhile, employee quota was subscribed 1.87 times.

A key concern highlighted by InGovern is the temporary release of pledged promoter shares before the IPO. Over 53 percent of WeWork India’s pre-IPO shares held by Embassy Buildcon were earlier pledged against borrowings of around Rs 2,065 crore. “The pledges were revoked mainly to facilitate the IPO. Under the agreement, if the listing didn’t happen, the shares would have to be re-pledged within 45 days. There are hardly any precedents where promoters revoke pledges temporarily just to enable an OFS,” Subramanian told Moneycontrol.