Introduction

A write petition has been filed before the Bombay High Court challenging the Securities and Exchange Board of India’s (SEBI) approval for the Initial Public Offering (IPO) of WeWork India Management Pvt. Ltd. The plea alleges regulatory inaction and non-disclosure of critical financial information, which could mislead public investors participating in the IPO.

Background of the Case

Case Name: Vinay Bansal v. SEBI (W.P. No. 31301/2025)

The petitioner, Vinay Bansal, a retail investor, contends that SEBI failed to discharge its statutory duty by approving WeWork India’s IPO despite significant financial instability and incomplete disclosures in the company’s offer documents.

He highlighted that as of March 2024, the company reported a negative net worth of ₹437 crore and a loss of ₹1,357 million in FY 2024, questioning its financial viability. The petition claims that such material facts were not properly disclosed to investors, constituting a material omission that could adversely affect investment decisions.

Petitioner’s Contentions

• SEBI’s approval reflects regulatory inaction and neglect of investor protection obligations.

• The IPO does not aim to create tangible assets or enable business expansion, but rather serves as a means for promoters to exit.

• Public investors are being misled into believing that WeWork India is a stable and profit-making company, despite continuous losses.

The petitioner further argues that incomplete IPO documentation has created ambiguity and potential risk for the investing public.

Court Proceedings

The Bombay High Court has admitted the petition and listed the matter for hearing on October 8, 2025. The court is expected to examine whether SEBI’s approval process complied with its mandate of ensuring transparency and investor protection under the SEBI Act and ICDR Regulations.

Conclusion

The case raises key questions about regulatory accountability, corporate disclosure norms, and the balance between capital market growth and investor safety. The outcome could influence how SEBI reviews IPO applications of loss-making or high-risk companies in the future.