The Securities and Exchange Board of India has temporarily put the initial public offering of WeWork India Management Ltd. on hold.
Without specifying reasons, the regulatory body stated that the "issuance of observations (has been) kept in abeyance," according to an update on its website.
The Embassy Group-promoted company had filed the draft IPO papers with SEBI on Jan. 31. It planned to offer 4.37 crore shares through the offer for sale route.
Under the OFS, promoter Embassy Buildcon LLP. and investor 1 Ariel Way Tenant Ltd. proposed to offload shares, according to the draft red herring prospectus.
In its draft papers, the company had stated the aim of the offer is to achieve the benefits of listing the equity shares on the stock exchanges.
WeWork India Management started operations in 2017. It provides flexible and high-quality workspaces.
Its customers include companies of all sizes—large enterprises, small and mid-size businesses, startups, as well as individuals.
It leases primarily Grade A office space from leading developers across Tier 1 cities and designs, builds, and operates them as flexible workspaces.
WeWork India has played a significant role in the growth of the flexible workspace sector in India and has been a key contributor to the evolution of the sector's offerings.
JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company and 360 ONE WAM are responsible for managing the public issue.
—With PTI inputs
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