The Bombay High Court has reserved its order on a petition challenging the adequacy of disclosures in the draft red herring prospectus (DRHP) filed by WeWork India, ahead of its scheduled ₹3,000-crore IPO listing on October 10, 2025. Justice RI Chagla and Justice Farhan Parvez Dubash concluded arguments and reserved their judgment, signifying a pivotal moment for the company's public offering.

The petition, lodged by Jaipur-based retail investor Vinay Bansal, has brought to light significant concerns regarding WeWork India's governance standards and transparency within its IPO process. Bansal asserts that the DRHP contains material non-disclosures and misleading statements, most notably the alleged concealment of a criminal chargesheet filed against the company’s promoters for serious economic offences, compromising investor protection and market transparency.

Reports from proxy advisory firm Ingovern Research Services indicate that WeWork India’s promoters, Jitendra Virwani and Karan Virwani, are reportedly under legal scrutiny by multiple agencies including the CBI, Enforcement Directorate, and Economic Offences Wing. These investigations are linked to alleged offences such as criminal conspiracy, cheating, breach of trust, and money laundering, casting a shadow over the company’s leadership.

During the court proceedings, the petitioner emphasized that there should be no exception to the rule mandating full and proper disclosure of all serious criminal proceedings pending against a company’s promoters and key managerial personnel. The failure to disclose such critical information, according to the petitioner, directly undermines investor protection and the overall transparency of the market. Furthermore, allegations were made that merchant bankers engaged in selective disclosures without independent scrutiny or materiality determination by the market regulator, the Securities and Exchange Board of India (Sebi).

The structure of the WeWork India IPO has also drawn criticism, as it is entirely an Offer for Sale (OFS). This means that the company itself will not receive any fresh capital from the IPO proceeds; instead, the entire sum is reportedly designated to benefit only the existing shareholders and promoters, raising questions about the immediate value proposition for new investors.

The public issue, which opened for subscriptions on October 3, 2025, experienced a weak response from retail investors. The overall subscription of 1.15 times, as per NSE data, was primarily bolstered by the participation of Qualified Institutional Buyers (QIBs). Breaking down the subscription rates, the Retail Individual Investors (RII) category was booked 61%, the Non-Institutional Investors (NII) segment saw 23% subscription, while the Qualified Institutional Buyers (QIBs) category was subscribed 1.79 times, ensuring the issue met its target.

The High Court’s reserved order, with the judgment expected within two weeks, is highly anticipated. This decision is poised to be crucial in either restoring or further eroding investor confidence in WeWork India’s IPO and, by extension, potentially influencing the broader market sentiment regarding public listings with similar disclosure challenges.