Plea Filed Before Bombay High Court Challenging SEBI’s Approval of WeWork India IPO
Petition Alleges SEBI Overlooked Statutory Red Flags and Disclosure Lapses in IPO Approval
A plea has been filed before the Bombay High Court challenging the Securities and Exchange Board of India’s (SEBI) approval of WeWork India’s initial public offering (IPO). The petitioners, led by Vinay Bansal, contend that SEBI failed to fulfill its statutory duties under Section 11A of the SEBI Act, 1992, by overlooking multiple red flags and material non-disclosures in WeWork India’s draft red herring prospectus (DRHP).
The petition asserts that WeWork India reported accumulated losses and negative net worth while projecting inflated growth without adequate risk disclosures. It also highlights suppression of pending complaints, misrepresentation of the company’s association with the global WeWork brand, and failure to disclose significant criminal proceedings under the Prevention of Money Laundering Act.
Petitioner Hemant Kulshrestha emphasized that criminal cases, including prosecution complaints filed by the Enforcement Directorate, were not disclosed, violating SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations. The petition demands quashing of SEBI’s approval, restraining WeWork from proceeding until investor concerns are addressed, and issuance of a speaking order by SEBI.
The matter is before a Division Bench of Justices RI Chagla and Farhan Parvez Dubash and is listed for further hearing on October 8, 2025.