Investor Challenges WeWork IPO Over Alleged Disclosure Lapses
An investor, Vinay Bansal, has filed a writ petition against WeWork's upcoming Initial Public Offering (IPO), alleging false statements and hidden facts in the DRHP. The IPO, open for subscription until October 7, is entirely an offer for sale (OFS) of 4.63 crore shares by Embassy Buildcon LLP and 1 Ariel Event Limited. Despite raising Rs 1,348 crore from anchor investors, the petitioner argues that SEBI can impose restrictions under Section 11A of the SEBI Act to protect investors and maintain market integrity.
Bansal's petition claims that the DRHP fails to disclose a criminal chargesheet against the promoters for serious economic offences. Karan Virvani, MD & CEO, WeWork India, expressed confidence in the IPO's success, citing a high-quality book of investors. However, the petitioner accuses SEBI of inaction despite receiving complaints against WeWork's IPO. The petition asks SEBI to decide on Bansal's complaint, investigate irregularities, and stop the securities from being listed until the matter is addressed. The IPO has a price band of Rs 615 to Rs 648 per share, aiming to raise Rs 3,000 crore.
The IPO, comprising an OFS of 4.63 crore shares, is open for subscription until October 7. Despite WeWork raising Rs 1,348 crore from anchor investors, a petitioner has raised concerns about the DRHP's disclosures, leading to a writ petition against the IPO. The outcome of this petition may impact the IPO's success and WeWork's listing plans.
