WeWork, other coworking companies firm up IPO plans on investor interest
₹600 crore to ₹1,500 crore." Peak XV-backed Awfis listed in May this year. The company raised ₹599 crore selling shares in the range of ₹364- ₹383 apiece. Since then, its stock has doubled and closed at ₹757.20 on the National Stock Exchange on Monday.
This kind of investor interest has encouraged the other co-working companies to list, the people said. Managed campuses and office experiences company Smartworks, which filed its draft red herring prospectus dated 14 August 2024 with the Securities and Exchange Board of India, is aiming at a ₹550 crore IPO, which includes a fresh issuance of shares and an offer for sale by existing investors. “Interest in this sector remains strong even on the unlisted side.
WeWork raised ₹1,200 crore as equity investment for a minority stake in June this year. This was after they had raised close to ₹500 crore in December 2022," said Prashant Rao, director and head of equity capital markets at Anand Rathi Investment Banking. “Table Space was another company that had raised a round in 2022.
There are other bootstrapped companies in the co-working space showing high growth potential, attracting investor attention." While Table Space did not respond to queries seeking comment on its IPO plans, a spokesperson for Simpliwork declined to comment. A response from WeWork was awaited. In 2023, Kontor Space, a co-working company, listed on the Indian exchanges.
The co-working space has been an eyecatcher for private equity firms in view of its asset-light model, higher returns on capital employed, EBITDA margins of more than 15% and scalability. PE firms have invested in Awfis, Table Space, Indiqube, and WeWork, among others. In the past couple of years, there have also been some acquisitions -
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