Executive Centre India Secures Sebi Nod For ₹2,600 Cr IPO
Overview
Executive Centre India has received Sebi's green light for its ₹2,600 crore IPO. The flexible workspace provider plans to issue equity shares, reserving the majority for institutional buyers. Proceeds will fund strategic acquisitions and general corporate needs, marking a significant step for the company's expansion in premium office solutions across Asia.
Executive Centre India Gets Sebi Green Light for ₹2,600 Crore IPO
Executive Centre India, a prominent flexible workspace provider, has secured the green light from the Securities and Exchange Board of India (Sebi) to launch its Initial Public Offer (IPO). The company aims to raise ₹2,600 crore through a fresh issue of equity shares, a crucial step in its growth trajectory.
IPO Structure and Proceeds
The IPO involves a fresh issue of equity shares with a face value of ₹2 each. A significant portion, at least 75% of the issue, is allocated to Qualified Institutional Buyers (QIBs). Non-Institutional Investors (NIIs) will have access to no more than 15%, while retail investors are allocated a maximum of 10%.
Proceeds from the ₹2,600 crore offering are earmarked for strategic investments. Specifically, funds will be used to invest in TEC Abu Dhabi, a direct subsidiary, to partially finance the acquisition of TEC SGP and TEC Dubai. These step-down subsidiaries are currently held by Corporate Promoter TEC Singapore. The remainder will bolster general corporate purposes.
Company Background and Expansion
Executive Centre India is an early international entrant in India's premium flexible workspace market, operating since 2008. It is part of the TEC Group and boasts pan-Asia operations. Its presence spans India, Singapore, the Middle East (including Dubai and Abu Dhabi), and other Asian hubs like Jakarta, Ho Chi Minh City, Manila, and Colombo.
The company's business model involves leasing bare shell properties, transforming them into managed, tech-enabled, aesthetically pleasing office spaces within Grade A buildings. As of March 31, 2025, Executive Centre India operated 89 centres across 14 cities in seven countries, with 80 of these featuring private offices.
Financial Performance
The company demonstrated robust financial growth in the fiscal year ending March 31, 2025 (FY25). Total income surged by 27.58% to ₹1,346.39 crore, up from ₹1,055.31 crore in FY24. Revenue from operations reached ₹1,322.64 crore in FY25, a 27.59% increase from the previous year's ₹1,036.62 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a healthy rise, climbing to ₹713.32 crore in FY25 from ₹583.54 crore in FY24.
Key Facilitators
Kfin Technologies will serve as the registrar for the IPO. The book-running lead managers appointed for this issue are Kotak Mahindra Capital Company, ICICI Securities, and Nomura Financial Advisory and Securities (India).
