NEW DELHI: Executive Centre India, part of the TEC Group and a provider of flexible workspaces, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).
The IPO involves a fresh issue of equity shares with a face value of ₹2 each, totaling up to ₹2,600 crore.
The company aims to use the net proceeds to invest in its direct subsidiary, TEC Abu Dhabi, for part-payment of acquiring TEC SGP and TEC Dubai, which are currently held by one of its corporate promoters, TEC Singapore. The remaining funds will be used for general corporate purposes.
With operations across Asia, including India, Singapore, and the Middle East (Dubai and Abu Dhabi), the company also has a presence in cities like Jakarta, Ho Chi Minh City, Manila, and Colombo. As of March 31, 2025, it had 89 operational centers in 14 cities across seven countries.
The net revenue retention rate stood at 120.33% for FY25 and 123.92% for FY24, demonstrating the company’s capability to retain and grow its client base. In FY25, over 1,200 MNCs benefited from an average of 24 workstations per client, with an average tenure of 50.46 months.
The overall client tenure was 48.97 months, surpassing the typical lock-in period of 20.95 months as of March 31, 2025. New operational centers launched between FY23 and FY25 recorded an average pre-sale occupancy of 64.33% across markets.
For the financial year ending March 31, 2025, the company reported total income of ₹1,346.397 crore, a 27.58% increase from ₹1,055.319 crore in FY24, which had itself seen a growth of 36.68% compared to ₹772.112 crore in FY23. Revenue from operations reached ₹1,322.643 crore in FY25, reflecting 27.59% growth from ₹1,036.620 crore in FY24.
Meanwhile, EBITDA rose to ₹713.329 crore in FY25 from ₹583.548 crore in FY24, and ₹468.030 crore in FY23.
Kotak Mahindra Capital Company, ICICI Securities, and Nomura Financial Advisory and Securities (India) serve as the book-running lead managers for this issue.
