Bombay High Court Clears Path for WeWork India's IPO Amid Legal Challenge

The Bombay High Court has dismissed petitions by Vinay Bansal and Hemant Kulshrestha to halt WeWork India's IPO, citing SEBI's adherence to regulatory obligations. The petitioners argued the IPO's risks were not fully disclosed, but the court found no grounds to annul SEBI's technical judgment.

The Bombay High Court has dismissed two writ petitions aimed at blocking WeWork India's impending IPO. Filed by Vinay Bansal and Hemant Kulshrestha, the petitions sought to derail the company's market debut citing potential risks to investors. However, the court decided in favor of the IPO's progress.

Justices RI Chagla and Farhan Parvez Dubash presided over the case, imposing a Rs 1 lakh penalty on Vinay Bansal and directing him to deposit it with the Maharashtra State Legal Services Authority. Despite arguments about the risks associated with WeWork India's offering, the court upheld SEBI's decision to greenlight the IPO.

Arguments centered around WeWork India's financial challenges and the ongoing legal issues facing the promoters. However, SEBI's counsel, Shiraz Rustomjee, argued that the regulatory body's scrutiny sufficed. The offer's 100% offer-for-sale condition also drew scrutiny, but the court found no violation of regulatory norms.

(With inputs from agencies.)