SMARTWORKS

Adds stock moves in paragraph 1 and 2, recasts throughout

By Meenakshi Maidas

Oct 10 (Reuters) - WeWork India Management WEWO.NS shares settled 3% lower in their trading debut on Friday, valuing the co-working space provider at 84.25 billion rupees (about $950 million), as investors worried about steep valuation and governance risks.

The shares opened barely above the IPO offer price of 648 rupees and fell as much as 5.2% to 614.25 rupees.

The firm, which licenses its brand from its now-bankrupt U.S. namesake WeWork Global, raised about $338.16 million in its IPO that was subscribed 1.15 times, driven largely by institutional bids.

"The market was not very comfortable with the valuation, and WeWork is now facing the heat," said Aishvarya Dadeech, chief investment officer at Fident Asset Management.

In terms of growth expectations too, WeWork appears less attractive than peers, Dadeech said, referring to projected revenue growth of 22% over fiscal years 2023 to 2025, behind listed peers such as Smartworks Coworking Spaces SMAW.NS, IndiQube Spaces IDIQ.NS and Awfis Space Solutions AWFI.NS.

WeWork India's listing came at a busy time for India's primary market. On Thursday, LG Electronics India LGEL.NS was bid 54.02 times, becoming the most subscribed billion-dollar IPO in nearly two decades, while Tata Capital's TATC.NS IPO drew bids worth $1.24 billion.

Beyond a crowded IPO market, WeWork India faces deeper challenges - from corporate governance concerns to questions over its ability to sustain operations and fund expansion amid slowing demand as well as rising competition from lean, profitable rivals.

Proxy advisor InGovern Research Services warned investors of WeWork India's fragile financials, including negative cash flow, high lease liabilities, and the absence of a fresh capital infusion.

WeWork India did not immediately respond to a request for comment.

The company operates flexible offices across eight major Indian cities, competing with peers such as Smartworks, which has risen 35% since its July debut, and IndiQube Spaces, which fell 15% after listing but has since recovered to trade 4% higher than its listing price.

Smartworks has a market capitalization of 68.9 billion rupees, while IndiQube is valued at 47.6 billion rupees, according to exchange data.

($1 = 88.6780 Indian rupees)

(Reporting by Meenakshi Maidas and Yagnoseni Das in Bengaluru; Editing by Sonia Cheema and Ronojoy Mazumdar)

(([email protected]; +91 8921483410;))

Oct 7 (Reuters) - WeWork India Management's WEWO.NS $338 million IPO was fully subscribed on the final day of bidding on Tuesday, driven by institutional demand even as retail investors stayed cautious about its steep valuation following recent co-working listings.

WHY IT'S IMPORTANT

WeWork India's IPO is seen as a test of investor appetite in the domestic co-working space, which has seen a spate of listings amid growing demand for flexible office space.

The company will continue to operate under an exclusive licence from WeWork Global, the U.S. firm once valued at $47 billion before it shelved its 2019 IPO.

CONTEXT

WeWork India is seeking a valuation of 86.85 billion rupees ($978.5 million) at the top end of its 615-648 rupees per share price band, according to Reuters calculations, a figure that far exceeds those of its recently listed peers.

IndiQube Spaces IDIQ.NS was valued at 44.13 billion rupees in its debut in July, while Smartworks Coworking Spaces SMAW.NS debuted at 52.96 billion rupees later that month.

Valuations are emerging as the key differentiator amid thin profit margins and high lease costs.

"Compared with peers like Awfis or Smartworks, WeWork is priced at a premium, making investors cautious," said Aishvarya Dadeech, chief investment officer at Fident Asset Management.

IndiQube Spaces delivered a tepid debut in July, while Smartworks saw gains on listing day.

BY THE NUMBERS

WeWork India's IPO, a full offer for sale of 46.3 million shares, drew bids worth 18.97 billion rupees as of 5:15 p.m. IST, exchange data showed.

Qualified institutional buyers bid for 1.79 times their quota, while retail investors subscribed 0.61 times.

The issue, covered only 16% earlier in the day, picked up after strong institutional demand.

Shares are slated to list on the BSE and NSE exchanges on October 10.

($1 = 88.7580 Indian rupees)

(Reporting by Meenakshi Maidas and Chandini Monnappa in Bengaluru; Editing by Sonia Cheema)

(([email protected]; +91 8921483410;))

Adds details and background from paragraph 3 onwards

Sept 29 (Reuters) - WeWork India Management WEWO.NS has set a price band of 615-648 rupees per share on Monday for its initial public offering, targeting a valuation of 86.85 billion rupees ($979.61 million), according to Reuters calculations.

The IPO of the Indian unit of U.S.-based shared office space provider, which is majority-owned by Embassy Group EMBA.NS, will open for retail investors on October 3, with anchor investors invited to submit bids starting October 1, a newspaper advertisement showed earlier in the day.

The IPO comes at a time when coworking spaces are experiencing a strong revival, driven by companies embracing hybrid work models after years of remote work.

WeWork India filed its draft papers for the IPO in early February. The 30-billion-rupee offering consists of 35.4 million shares held by Indian real estate firm Embassy Group and 10.9 million shares held by We Work's affiliate 1 Ariel Way Tenant.

The company does not plan to issue any fresh shares.

WeWork India, launched in 2017, is majority-owned by real estate tycoon Jitu Virwani and his son Karan, who own Bengaluru-based developer Embassy Group.

As of September 30, 2024, WeWork India operated 59 centres with a total capacity of 94,440 desks across eight cities. The Indian unit expects the listing to boost brand visibility and provide liquidity for existing shareholders, according to its prospectus.

Once listed, WeWork India will directly compete with peers Smartworks Coworking Spaces SMAW.NS and Awfis Space Solutions AWFI.NS.

($1 = 88.6580 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sonia Cheema and Sherry Jacob-Phillips)

(([email protected]; +91 8921483410;))

Aug 25 (Reuters) - Smartworks Coworking Spaces Ltd SMAW.NS:

• SUPREME COURT DISMISSES INFRASTRUCTURE WATCHDOG APPEAL

Source text: ID:nBSE3XzMy6

Further company coverage: SMAW.NS

(([email protected];;))

Aug 12 (Reuters) - Smartworks Coworking Spaces Ltd SMAW.NS:

• JUNE-QUARTER CONSOL LOSS 42 MILLION RUPEES

• JUNE-QUARTER CONSOL REVENUE FROM OPERATIONS 3.79 BILLION RUPEES

Further company coverage: SMAW.NS

(([email protected];))

Adds details and background from paragraph 2 onwards

July 17 (Reuters) - Smartworks Coworking Spaces' SMAW.NS shares climbed 14% in their trading debut in Mumbai, valuing the company at 52.96 billion rupees (about $617 million) as investors bet on rising demand for integrated office solutions in India.

The provider of integrated enterprise workspaces opened at 435 rupees, above its issue price of 407.

Smartworks' IPO comes amid strong demand for commercial space in India, following two consecutive years of record office leasing activity and as global companies expand their presence in India.

This has propelled India into becoming Asia-Pacific's top office market, along with Japan and Singapore, according to real estate services provider CBRE.

Smartworks' $67.9 million initial public offering was subscribed 13.45 times over three days, largely by qualified institutional buyers, including foreign investors, domestic banks, insurers and mutual funds.

The firm competes with WeWork India Management WEWO.NS and Awfis Space Solutions AWFI.NS in the domestic market.

($1 = 85.8480 Indian rupees)

(Reporting by Manvi Pant; Editing by Vijay Kishore)

(([email protected]; +918447554364;))