Home / Business and Economy / WeWork India IPO Clears Legal Hurdle
WeWork India IPO Clears Legal Hurdle
1 Dec
Summary
- Bombay High Court rejected petitions challenging WeWork India's IPO.
- Petitioners cited undisclosed risks like company losses and promoter issues.
- SEBI's approval for the IPO was upheld by the court's decision.
The Bombay High Court has dismissed two petitions that sought to block WeWork India's upcoming initial public offering. This decision removes a last-minute hurdle for the company's market debut. The petitions had challenged the Securities and Exchange Board of India's approval, arguing that crucial risks were not sufficiently disclosed.
Key concerns raised by the petitioners included WeWork India's financial losses, negative net worth, ongoing criminal proceedings involving its promoters, and the nature of the offer-for-sale. They contended that this combination presented an unprecedented risk to investors. However, the court rejected these arguments, upholding the regulatory approval.
Legal representatives for SEBI and WeWork India argued that the company had adhered to all disclosure regulations and that challenges were raised too late in the process. The court's oral order implies that the company can now move forward with its IPO plans, pending a detailed judgment.
