WeWork Inc Sells 2.5% Stake In WeWork India
US-based WeWork Inc sold a 2.53% stake in its Indian coworking subsidiary, WeWork India, for approximately ₹244.1 crore ($2.9 million) through open market transactions.
WeWork Inc, the U.S.-based coworking provider, divested a 2.53% stake in its Indian entity, WeWork India, for ₹244.1 crore ($2.9 million) via multiple open market transactions on Wednesday. The sale was executed through its affiliate, 1 Ariel Way Tenant Limited.
Data from the Bombay Stock Exchange (BSE) revealed that 3.5 million shares were sold at ₹697.55 per share. This price represented a 1.4% discount to the stock's closing price on the preceding Friday. The shares were acquired by several prominent Indian institutional investors, including Motilal Oswal Asset Management Company, Citigroup, HDFC Standard Life Insurance Company, Motilal Oswal Mutual Fund, and ICICI Prudential Mutual Fund.
Prior to this transaction, WeWork Inc held a 14.82% stake in WeWork India. The sale follows a significant surge in WeWork India's share price, which has climbed over 43.3% in the past three months. Despite this recent gain, the stock experienced a slight decline of 6.08% in the past week, influenced by a weaker first-quarter financial report.
In the first quarter of the fiscal year, WeWork India reported a net loss of ₹4.1 crore, an improvement from the ₹14.2 crore loss in the same period last year. However, operating revenue increased by 28% to ₹683.8 crore. The company also expanded its operational capacity, adding nearly 7,000 desks, bringing its total to over 130,000 desks across 79 centers in eight cities.