WeWork India Management Ltd has filed an application with the National Company Law Tribunal (NCLT), Bengaluru Bench, seeking approval for the proposed reduction of its share capital through the utilisation of its Securities Premium Account. According to reports from CNBC TV18, the company e-filed the application in Form RSC-1 on September 11 under Section 66 read with Section 52 of the Companies Act, 2013, and the National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016. The application has been filed in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with the stock markets including NSE and BSE duly informed as part of regulatory compliance.
Under the proposed reduction, WeWork India plans to utilise ₹20,501.60 crore from the ₹21,589.99 crore balance in its Securities Premium Account to fully set off accumulated losses of ₹20,501.60 crore as of March 31, 2026. As reported by CNBC TV18, the move follows approvals granted by the company's Board of Directors on July 16, 2026, and its members on August 25, 2026, with shareholders approving the special resolution with 99.99% voting in favor during the 10th Annual General Meeting. The company stated that the proposed reduction would eliminate the accumulated losses from its books of account and help present a true and fair view of its financial position. Following the restructuring, the residual balance standing to the credit of the Securities Premium Account will be ₹1,088.39 crore.
The NCLT application comes as WeWork India reported a sharp improvement in its financial performance for the first quarter of FY27. According to CNBC TV18, the company's net loss narrowed to ₹4.3 crore from ₹14.1 crore in the year-ago period. Revenue rose 27.7% year-on-year to ₹705 crore from ₹535.3 crore, while EBITDA increased 30.4% to ₹438 crore from ₹336 crore. The company's EBITDA margin also improved to 64.04% from 62.7% in the corresponding quarter last year.
Operationally, WeWork India expanded its network to 79 centres across eight cities, with 9.1 million square feet of operational space. As reported by CNBC TV18, its total committed footprint stood at 12 million square feet, including signed leases and letters of intent. During the quarter, the company added around 7,000 desks, taking its operational capacity to 133,600 desks, up 17.1% year-on-year. The improvement was supported by higher demand for flexible workspaces, which helped drive growth in revenue and operating profit.
Shares of WeWork India Management closed 0.90% lower at ₹670.85 on the NSE on Friday, according to CNBC TV18. The company's strategic move to clean up its ledger slate demonstrates a proactive posture, with the restructuring creating financial flexibility and enhancing long-term balance sheet presentation. Since it is a non-cash accounting adjustment, there is no impact on WeWork India's operating liquidity, cash flows, or immediate earnings potential. The market impact is expected to be neutral to slightly positive, with the clean balance sheet improving corporate metrics and long-term investor sentiment. The completion of the restructuring is subject to final legal sanction from the NCLT Bengaluru Bench, with the flexible commercial workspace segment in India observing consistent operational expansion and structural growth.
