Executive Centre India files DRHP with Sebi for IPO; to raise Rs 2,600 crore via fresh equity issue

Executive Centre India, a premium provider of flexible workspace solutions, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) comprising a fresh issue of equity shares aggregating up to Rs 2,600 crore.

According to the DRHP, the net proceeds from the IPO will be utilised primarily to invest in its direct subsidiary TEC Abu Dhabi. This investment will help finance the part-payment for the acquisition of TEC Singapore and TEC Dubai, both step-down subsidiaries currently held by corporate promoter TEC Singapore, as part of an internal restructuring agreement. The remaining proceeds will be deployed towards general corporate purposes.

Executive Centre India, which began operations in 2008, is part of the larger TEC Group with over 30 years of experience in delivering space-as-a-service. The company operates across 14 cities in seven countries including India, Singapore, UAE (Dubai and Abu Dhabi), Indonesia (Jakarta), Vietnam (Ho Chi Minh City), the Philippines (Manila), and Sri Lanka (Colombo).

The company primarily leases bare-shell spaces in Grade A commercial buildings and transforms them into fully managed, tech-enabled premium offices. These are offered as flexible workspace solutions to a diverse clientele including multinational corporations, SMEs and other enterprises.

As of March 31, 2025, Executive Centre operated 89 centres, of which 80 had private offices and six offered managed office solutions across India and the Middle East. Its landlord partners include Earnest Towers, Panchshil Corporate Park, Prestige Estates, RMZ, Sattva Group, Dubai World Trade Centre LLC, Alborz Developers (a Bharti Realty subsidiary), Overseas Realty (Ceylon) PLC, MSR Developer, and Olympia Tech Park.

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In FY25, the company served more than 1,550 clients, including marquee names such as Anaplan, ArcelorMittal Nippon Steel, Atyeti IT Services, BBVA, Indian School of Business, Hines, Sandvik, Criteo, Crunchyroll, Truecaller, Zscaler, Open Text, and the National Payments Corporation of India.The company reported a net revenue retention rate of 120.33% in FY25, slightly down from 123.92% in FY24, indicating a stable and expanding client base. Notably, Executive Centre served over 1,200 MNC clients in FY25, with an average tenure of 50.46 months and an average of 24 workstations per client. Across new centres launched between FY23 and FY25, pre-sale occupancy averaged 64.33%.Financially, the Executive Centre posted a total income of ₹1322.6 crore in FY25, up 27.59% year on year. The company’s EBITDA rose to ₹713.3 crore in FY25 from ₹583.5 crore in FY24 and ₹468 crore in FY23.

Kotak Mahindra Capital Company, ICICI Securities, and Nomura Financial Advisory and Securities (India) are acting as the Book Running Lead Managers to the issue.

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