The Bombay High Court dismissed two writ petitions challenging SEBI’s approval of WeWork’s Rs 3,000 crore IPO. The court rejected claims of non-disclosure and unlawful representation in the DRHP.
According to a report by ANI, the Bombay High Court on Monday dismissed two writ petitions challenging SEBI’s approval of WeWork’s IPO.
A division bench of Justices RI Chagla and Farhan Parvez rejected the allegations and directed Bansal to pay Rs 1 lakh to the Maharashtra Legal Services Authority within two weeks.
As per ANI, one of the petitions, filed by Vinay Bansal, alleged that the company made “unlawful” claims in its Draft Red Herring Prospectus (DRHP).
Plea against WeWork IPO: 2 petition were filed
The ANI report stated that, Bansal had argued that SEBI failed to consider the non-disclosure of pending criminal proceedings against the promoter group and approved the Rs 3,000 crore IPO despite heavy losses, negative net worth, and presented an exaggerated growth trajectory in its DRHP.
The second petition, filed by Hemant Kulshresta, also accused WeWork of withholding details of criminal cases from the public. The court dismissed this plea as well, though no penalty was imposed.
The court completed hearings on October 8, 2025, and delivered its decision orally on Monday. The written judgment is awaited, ANI reported.
During the hearing, Senior Counsel Shiraz Rustomjee, appearing for SEBI, argued that the regulator had already instructed WeWork to list all criminal proceedings as the first risk factor in the red herring prospectus. He added that courts should not interfere with a regulator’s technical decisions unless they are arbitrary or unconstitutional.
ANI quoted Senior counsels Darius Khambatta and Gaurav Joshi, representing WeWork India, saying the company had complied fully with disclosure norms under ICDR regulations. Meanwhile, counsel for the lead merchant bankers, Janak Dwarkadas, argued that the OFS route is permitted under both the Companies Act and the ICDR Regulations, and added, as per ANI that SEBI had thoroughly monitored due diligence and the disclosure of relevant risk factors, ANI reported.
WeWork IPO details
WeWork launched its IPO in early October and filed for an issue size of Rs 3,000 crore via the OFS route. The company’s shares listed on the exchanges on October 10, 2025. The stock, which debuted at Rs 650, is currently trading at a discount of over 9%.
WeWork Share Price
