WeWork India IPO Kicks Off Amidst Controversy Over Alleged False Statements
WeWork India's Initial Public Offering (IPO) has kicked off, with the company raising Rs 1,348 crore from anchor investors. However, the IPO has faced controversy, with an investor filing a writ petition alleging false statements and hidden facts in the draft red herring prospectus (DRHP).
The IPO, open for subscription until October 7, aims to raise Rs 3,000 crore. It entirely comprises an offer for sale (OFS) of 4.63 crore shares by Embassy Buildcon LLP and 1 Ariel Event Limited. The price band is set at Rs 615 to Rs 648 per share. Despite the strong response, an investor, Vinay Bansal, has raised concerns.
Bansal has filed a petition alleging that WeWork's DRHP fails to disclose a criminal chargesheet against the promoters and hides major gaps in financials and brand ownership. He accuses SEBI of inaction despite his complaints. Bansal argues that SEBI can impose restrictions on the IPO under Section 11A of the SEBI Act to protect investors and market integrity. Karan Virvani, MD & CEO, WeWork India, however, expresses confidence in the IPO's strong response and the company's current capital sufficiency.
The WeWork India IPO is underway, but controversy surrounds the offering. An investor's petition alleges false statements and hidden facts in the DRHP. While the IPO aims to raise Rs 3,000 crore, the outcome remains uncertain, pending SEBI's response to the petition.
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