Bombay High Court seeks SEBI response on WeWork India IPO challenge

New Delhi: The Bombay High Court has sought a response from the Securities and Exchange Board of India (SEBI) regarding a petition challenging the ongoing Initial Public Offering (IPO) of WeWork India Management, the Indian subsidiary of the global co-working brand as per the Live Law report.

The petition, filed by retail investor Vinay Bansal, alleges significant lapses in the company’s IPO documents and contends that SEBI failed to act on his complaint submitted in August 2025.

According to Bansal, the IPO, structured entirely as an Offer for Sale (OFS) of over 4.3 crore shares, does not raise fresh capital for the company but provides an exit opportunity for existing shareholders, including promoter Embassy Buildcon LLP.

The petitioner highlighted WeWork India’s financials, noting the company is loss-making with a negative net worth of Rs 437 crore as of March 2024, and cited consecutive annual losses over the previous three financial years. 

The plea also raised concerns about the licensing of the “WeWork” brand, which remains valid only while promoters retain management control, creating what the petitioner described as material risk to investors.

Additionally, the petition mentions pending legal matters involving the promoters, including charges filed by the CBI, the Enforcement Directorate, and the Economic Offences Wing, some of which were reportedly not disclosed in the Draft Red Herring Prospectus (DRHP) and added later via an addendum. Bansal has requested that SEBI conduct an investigation into these issues and consider placing the IPO on hold until such an inquiry is concluded.

The Bombay High Court has posted the matter for further hearing on October 8, 2025. A separate petition raising similar concerns has also been filed by Hemant Kulshreshtha