NEW DELHI: Executive Centre India has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).
The IPO will feature a fresh equity share issuance with a face value of ₹2 each, totaling up to ₹2,600 crore. As outlined in the draft red herring prospectus (DRHP), the net proceeds are intended primarily for investments in TEC Abu Dhabi, a direct subsidiary, and to fund part of the acquisition costs for TEC Singapore and TEC Dubai. These two entities are currently step-down subsidiaries of TEC Singapore, a corporate promoter of the company, and this transaction is part of a larger internal restructuring. The remaining funds will be allocated for general corporate purposes.
The company has been operating premium flexible workspace solutions in India since 2008 and is part of the TEC Group, which spans several markets in Asia and the Middle East. As of March 31, 2025, it managed 89 centers across 14 cities in seven countries, including India, Singapore, the UAE (Dubai and Abu Dhabi), Indonesia, Vietnam, the Philippines, and Sri Lanka.
Operating under an asset-light model, the company leases bare-shell Grade A office spaces from landlords and transforms them into fully managed workspaces. As of March 31, 2025, 80 out of its 89 centers featured private office formats, and six centers provided managed solutions in India and the Middle East.
The company has established long-term leasing relationships with various commercial real estate developers throughout its markets. In FY25, the company accounted for over 1,550 clients, including multinational corporations and small and medium enterprises. Its net revenue retention rates were 120.33% in FY25 and 123.92% in FY24, indicating growth within its existing client base.
Financially, the company reported a total income of ₹1,346.4 crore for the fiscal year ending March 31, 2025, a 27.6% increase from ₹1,055.3 crore in FY24. Gross revenue from operations reached ₹1,322.6 crore in FY25, up from ₹1,036.6 crore the previous year. EBITDA grew to ₹713.3 crore in FY25 compared to ₹583.5 crore in FY24.
Kotak Mahindra Capital Company, ICICI Securities, and Nomura Financial Advisory and Securities (India) are serving as the lead managers for the issue.
