Investor Challenges WeWork India's IPO Over Hidden Criminal Charges
An investor, Vinay Bansal, has taken SEBI to court over WeWork India's upcoming IPO. Bansal alleges that the company's draft prospectus hides serious criminal charges against its promoters. Despite complaints, SEBI has not acted, claims Bansal.
Bansal's petition argues that SEBI can halt the IPO under Section 11A of the SEBI Act. He claims that WeWork's DRHP fails to disclose a criminal chargesheet against its promoters for serious economic offences. The IPO, priced between Rs 615 to Rs 648 per share, aims to raise Rs 3,000 crore. It is open for subscription until October 7.
WeWork has already raised Rs 1,348 crore from anchor investors. Karan Virvani, MD & CEO, WeWork India, remains confident in the IPO process and the quality of investors involved. The IPO entirely comprises an offer for sale (OFS) of shares by Embassy Buildcon LLP and 1 Ariel Event Limited.
Bansal's petition seeks SEBI's decision on his complaint and investigation into the alleged irregularities. If found, these could potentially stop WeWork's securities from being listed on the NASDAQ. The IPO's success now hangs in the balance, awaiting SEBI's response.
