Fri Oct 03 03:50:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:

**WeWork India IPO Faces Legal Hurdle as Investor Alleges Misconduct, Seeks SEBI Intervention**

**Mumbai, India** – WeWork India’s highly anticipated Initial Public Offering (IPO) is facing a last-minute challenge as an investor has filed a petition with the Bombay High Court, alleging wrongdoing by the company and inaction by the Securities and Exchange Board of India (SEBI). The IPO, aiming to raise ₹3,000 crore, is scheduled to open for subscription on October 3rd, with a price band of ₹615 to ₹648 per share.

The petitioner claims that WeWork India’s Draft Red Herring Prospectus (DRHP) contains misleading information and conceals crucial details, including charges filed against promoters in connection with serious financial crimes. The petition urges SEBI to halt the IPO until a thorough investigation is conducted and a formal decision is reached regarding the allegations.

The Bombay High Court petition asserts that Section 11A of the SEBI Act grants the market regulator explicit authority to suspend any issue to safeguard investor interests and ensure market integrity. The petitioner further argues that the IPO proceeds will not generate tangible assets or business opportunities for the company, but will primarily serve as an exit route for promoters at the expense of retail investors, violating established SEBI principles.

The petition also challenges SEBI’s alleged failure to act on detailed complaints filed against the company, stating that SEBI has neither ruled on the issue nor provided any reasoned communication, thereby neglecting its duty to issue a clear order.

This legal challenge comes despite WeWork India having already raised ₹1,348 crore from anchor investors ahead of the IPO. The IPO is entirely an Offer for Sale (OFS) of 4.63 crore shares, with the promoter group entity Embassy Buildcon LLP and investor 1 Ariel Way Tenant Limited (part of WeWork Global) divesting their stakes.

The Bombay High Court is expected to hear the petition in the coming days. The outcome could significantly impact the timeline and success of WeWork India’s IPO, raising concerns about transparency and investor protection within the Indian IPO market.

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