WeWork India's ₹3,000-Crore IPO in Limbo as Court Delays Verdict on Disclosure Challenge
WeWork India's ₹3,000-crore IPO, slated for 10 October 2025, has hit a snag. A petition challenging the company's disclosures in the Draft Red Herring Prospectus (DRHP) has been filed with the Bombay High Court, which has reserved its order on the matter.
Vinay Bansal, the petitioner, argues that the DRHP fails to adequately disclose serious criminal proceedings against the promoters and key managerial personnel. He contends that these inadequate disclosures compromise investor protection and market transparency. The final verdict on the petition is expected within 2 weeks, though no fixed date has been announced.
The IPO, structured entirely as an Offer for Sale (OFS), has seen a weak response from retail investors but strong support from Qualified Institutional Buyers (QIBs). It has been subscribed 1.15 times. The court's judgement is considered crucial for restoring or further impacting investor confidence in the IPO.
In India, the decision over the constitutional validity of disclosures in an IPO document like WeWork India's DRHP is typically made by the courts. The High Courts, including the Bombay High Court, and the Supreme Court of India have the jurisdiction to decide such matters.
WeWork India's ₹3,000-crore IPO hangs in the balance as the Bombay High Court awaits to deliver its verdict on the petition challenging the company's disclosures. The outcome is expected to significantly influence investor confidence in the IPO.
