Sebi Halts WeWork India's IPO Process

WeWork India's initial public offering (IPO) has been put on hold by the Securities and Exchange Board of India (SEBI), stopping the flexible workspace operator's plans just two months after it had submitted its Draft Red Herring Prospectus (DRHP). The IPO had requested an offer-for-sale (OFS) of close to 4.38 crore equity shares, enabling sale by key stakeholders such as Embassy Buildcon LLP and Ariel Way Tenant.

SEBI did not state the reason for making the decision but stated its comments on draft papers are held in abeyance temporarily, typically under the process of pending investigations or regulators' review. 

The action follows wider reviews of IPO listings, with firms such as Indira IVF Hospital pulling draft papers in the recent past.

WeWork India, established in 2017, has also reflected good financial health with a 26% jump in operating income in FY24. But cancellation of its IPO plans has cast doubts over its future direction and market positioning. 

As things happen, the reaction of the company to the action by SEBI will be important in determining its business direction and investor sentiment.