Abhishek Sinha
Mumbai, 1 December: WeWork India has received a major legal boost after the Bombay High Court upheld capital markets regulator SEBI’s approval for the company’s ₹3,000-crore IPO, rejecting two separate petitions filed against the listing.
A division bench of Justices R.I. Chagla and Farhan Parvez Dubash dismissed a plea filed by petitioner Vinay Bansal, who had questioned SEBI’s decision, alleging that crucial disclosures — including details of pending criminal proceedings under the PMLA (Prevention of Money Laundering Act) — were overlooked.
The Court not only rejected the plea but also imposed a cost of ₹1 lakh on Bansal, directing him to deposit the amount with the Maharashtra Legal Services Authority (MLSA) within two weeks. The detailed order is awaited.
In a related plea, the High Court also dismissed a petition filed by Hemant Kulshrestha, who had similarly accused WeWork India of hiding significant criminal proceedings in its draft red herring prospectus (DRHP). However, no monetary penalty was imposed in this case.
What the petitions claimed
The petitioners argued that:
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The company’s DRHP allegedly concealed disputes and irregularities.
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WeWork India projected strong growth despite accumulated losses and negative net worth.
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The IPO documents portrayed a misleading sense of financial backing from the global WeWork group, whereas the Indian entity only licenses the brand name.
The petitioners maintained that SEBI should have rejected the IPO approval instead of leaving due-diligence responsibility solely to investors.
IPO performance
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DRHP was filed on 31 January 2025
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Subscription window: 3–7 October 2025
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Final-day subscription: 1.15 times
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QIBs: 1.79x subscription
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Non-institutional investors: 23%
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Retail investors: 61%
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WeWork India made its stock market debut on 10 October.
Headline suggestions (optional)
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