The Bombay High Court has sought a response from SEBI regarding WeWork India's ₹3,000 crore IPO. The petitioner alleges that despite significant losses and negative net worth, the company presented an overly positive outlook on future growth and concealed information about risks and pending cases. The IPO will remain open until October 7.
WeWork IPO: The Bombay High Court has sought a response from SEBI regarding the approval of WeWork India's IPO. A petition by retail investor Vinay Bansal alleges that the company did not accurately disclose information about losses, negative net worth, and pending legal cases in its DRHP, and presented an excessively positive outlook on future growth. WeWork India's ₹3,000 crore IPO opened on October 3 and will close on October 7, with listing expected around October 10 on NSE and BSE.
Petitioner's Allegations
Petitioner Vinay Bansal claims that WeWork India presented an overly positive outlook on the company's future in the IPO despite significant losses and negative net worth. However, the associated risks were not properly disclosed. The petition further alleges that the company concealed information from investors about several pending cases and complaints, which could have influenced their investment decisions.
According to LiveLaw, several serious cases are registered against WeWork India. These include a CBI charge sheet related to corruption from 2014. Additionally, a PMLA investigation by the ED is ongoing. In November 2024, the EOW also filed a charge sheet against the company. This particular case was not included in the DRHP issued in January 2025. This information was only added in August 2025, when the petitioner raised an objection.
IPO Details
WeWork India's IPO opened on October 3, 2025, and will close on October 7. The share price for this IPO has been fixed between ₹615 and ₹648. The lot size is 23 shares. This IPO is presented as an Offer for Sale (OFS), meaning the company will not receive any new funds. Existing shareholders will sell their stake. Listing is expected around October 10 on NSE and BSE.
High Court Seeks Response from SEBI
The Bombay High Court has asked SEBI what action was taken if irregularities were found in the IPO's Draft Red Herring Prospectus (DRHP). The petitioner alleges that SEBI has violated its own regulations. The High Court has issued a notice to SEBI to respond.
Investor Concerns
Vinay Bansal stated that it is crucial for investors to have accurate information. If the company fails to disclose its losses, pending lawsuits, and risks, investors will not be able to make informed decisions. The petitioner believes that investors should receive complete information before investing in an IPO.
IPO's Market Impact
WeWork India's IPO is a significant topic of discussion in the market. As an Offer for Sale, it will benefit existing investors, but risks also exist for new investors. The petitioner's allegations could increase skepticism among investors.
