WeWork Global sells 2.5% stake in WeWork India Management for Rs 244 crore

WeWork Global on Friday divested a 2.5 per cent stake in flexible workspace operator WeWork India Management for Rs 244 crore through open market transactions.

According to the block deal data on the BSE, WeWork Global through its affiliate, 1 Ariel Way Tenant Ltd, offloaded 35 lakh equity shares in five tranches, representing a 2.52 per cent stake in WeWork India Management.

The shares were disposed at an average price of Rs 697.55 apiece, taking the combined transaction to Rs 244.14 crore.


After the latest transaction, 1 Ariel Way Tenant Ltd's holding in WeWork India Management declined to 12.3 per cent from 14.82 per cent.

Despite the stake sale, WeWork Global through its arm will remain the largest public shareholder in the company.

Meanwhile, Motilal Oswal Asset Management Company Ltd PMS, Motilal Oswal Mutual Fund (MF), ICICI Prudential MF, HDFC Standard Life Insurance Company Ltd, and Citigroup Global Markets Mauritius bought an equal number of shares at the same price.

Shares of WeWork India Management fell 1.57 per cent to close at Rs 707.80 apiece on the BSE.

In July, WeWork India reported a consolidated net loss of Rs 4.30 crore for the first quarter of this fiscal year due to higher expenses.

The company had posted a net loss of Rs 14.10 crore in the year-ago period.

Its total income rose to Rs 700.74 crore during the April-June quarter of this fiscal year from Rs 545.71 crore in the corresponding period of the preceding year.

In 2017, WeWork India began as a joint venture between WeWork Global (US-based WeWork Inc) and Embassy Group. After WeWork Inc filed for Chapter 11 bankruptcy in the US, it moved to sell off its India stake entirely.

WeWork India is majority-owned and promoted by Embassy Group, and is the exclusive licensee of the WeWork brand in the country.