Khaitan & Co represented the Book Running Lead Managers – JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company and 360 One WAM, before the Bombay High Court in writ proceedings seeking a stay on the IPO of WeWork on the ground of alleged inadequate disclosures.
On 1 December 2025, the Division Bench of Justice R.I. Chagla and Justice Farhan Dubash dismissed two writ petitions filed by individual investors under Article 226 of the Constitution of India. The petition filed by an investor, Mr Hemant Kulsreshtha was dismissed without costs and the petition filed by another investor, Mr Vinay Bansal was dismissed with costs of Rs. 1 Lakh payable to the Maharashtra Legal Services Authority within two weeks.
The dispute centred on allegations of deliberate non-disclosure and partial disclosure of ongoing proceedings against the promoters in the Draft Red Herring Prospectus of WeWork’s IPO. The Petitioners sought action by the SEBI against WeWork and the BRLMs for these grounds. Rejecting the Petitioners’ contention regarding suppression, the Court held that all material information and documents had been adequately disclosed and that the BRLMs had performed their obligations with diligence and in accordance with the statutory provisions.
The Court further observed that the information alleged to be withheld had in fact been disclosed, and neither WeWork or the BRLMs mislead or misinformed potential investors. The Bench noted that the Petitioners had approached the Court with undue delay despite claiming urgency, terming the petitions frivolous. It also remarked that WeWork and the BRLMs had acted in the best interests of investors by promptly addressing the Petitioners’ complaints.
The ruling reinforces accountability of litigants, scrutinises the severity and authenticity of the claims raised by the public in high stakes situations, and discourages frivolous and delayed proceedings. The ruling further upholds the discretion and judgement of SEBI’s decisions as a regulatory body and highlights the duties and responsibilities of the regulatory and financial bodies involved in an IPO.
The team comprised of Ravitej Chilumuri (Partner), Aishwarya Singh (Principal Associate), and Sanya Gandhi (Associate), and Senior Counsel Mr Janak Dwarkadas and Senior Counsel Mr Ravi Kadam appearing for the Book Running Lead Managers.