Executive Centre India Limited files DRHP with SEBI, plans to raise Rs 2,600 crore through a fresh issue of equity shares

Executive Centre India Limited, one of the early international brands to lead the offering of premium flexible workspace solutions amongst the flexible workspace operators currently operating in India has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).

The IPO comprises of a fresh issue of equity shares bearingface value of ₹2 each aggregating up to ₹ 2600 Crores. The company proposes to utilise the Net Proceeds towards an investment in TEC Abu Dhabi, a direct subsidiary, to finance part-payment of the consideration for the acquisition of TEC SGP and TEC Dubai, two step-down subsidiaries currently held by one of the company’s Corporate Promoters, TEC Singapore. This transaction is being carried out in accordance with the terms of the Internal Restructuring Agreement. The remaining proceeds will be allocated towards general corporate purposes.

Executive Centre India Limited is one of the early international brands to lead the offering of premium flexible workspace solutions amongst the flexible workspace operators currently operating in India. The Company has been operating in India since 2008 and is a part of the TEC Group, which has over three decades of experience in delivering space-as-a-service. The company is an India-based operator with pan-Asia operations, spread across India, Singapore, the Middle East comprising Dubai and Abu Dhabi in the United Arab Emirates, rest of Asia comprising Jakarta in Indonesia, Ho Chi Minh City in Vietnam, Manila in Philippines and Colombo in Sri Lanka.

The company primarily leases bare shell properties, designs, builds and transforms it into fully managed, tech-enabled, modern and aesthetically pleasing office spaces within Grade A office buildings from landlords across these markets. These are then operated as premium flexible workspaces for their diverse customer base, including multinational corporations, small and medium enterprises and other legal entities, which occupy workstations in the operational centers towards our serviced office solutions. Serviced Office Solutions comprise private offices and managed solutions. As of March 31, 2025, 80 of our 89 operational centers had private offices across all markets and six operational managed solutions located in India and the Middle East. As of March 31, 2025, the total portfolio comprised 89 operational centers across 14 cities in seven countries.

The company has developed long-term and mutually beneficial relationships with landlords, including Earnest Towers Private Limited, Panchshil Corporate Park Pvt Ltd, Prestige Estates Projects Limited, RMZ, Sattva Group, Dubai World Trade Centre LLC, Alborz Developers Limited a subsidiary of Bharti Realty(Worldmark), Overseas Realty (Ceylon) PLC, MSR Developer and Olympia Tech Park.

In Fiscal 2025, the company served a diverse client base of over 1,550 unique clients comprising MNCs, marquee brands and small and medium-sized enterprises. Some marquee clients include Anaplan Middle East Ltd, ArcelorMittal Nippon Steel India, Atyeti IT Services Private Limited, BBVA, Indian School of Business, Hines, Sandvik, Criteo, Crunchyroll, GreenOak India Investment Advisors Private Limited, Mast-Jaegermeister Services (India) Private Limited, Northland Controls India Private Limited, Ortholite India Pvt Ltd, The Trade Desk India Pvt Ltd, Truecaller, Zscaler, Open Text and National Payments Corporation of India.

The net revenue retention rate was 120.33% and 123.92% in FY25 and FY24, respectively, reflecting the company’s ability to retain and expand the Client base. In FY25, they served over 1,200 MNC clients, with an average of 24 workstations per MNC Client and an average MNC Client tenure of 50.46 months.

The company’s focus on unit-level economics which has enabled them to endure market fluctuations and maintain financial stability over the long term, while also achieving revenue growth and generating net cash flow from operating activities during FY23 and FY25. Further, in FY24, the revenue per square foot in India was the highest amongst Bench-marked Peers in India and maintained the highest operational occupancy. The Clients typically remain for multiple contract periods, as evidenced by the average tenure of Clients of 48.97 months, which exceeded the typical lock-in period of license agreement with Clients of 20.95 months as of March 31, 2025. For the new operational centres between FY23 and FY25, the average pre-sale occupancy was 64.33% across all markets.

For the financial year ended March 31, 2025, the company reported a total income of ₹1346.397 Crores, marking a 27.58% increase from ₹1055.319 Crores in FY24. In FY24, the total income had grown by 36.68% over the previous year’s ₹772.112 Crores. Revenue from operations stood at ₹1322.643 Crores in FY25, reflecting a 27.59% growth over ₹1036.620 Crores recorded in FY24, which itself had grown by 35.79% compared to ₹763.389 Crores in FY23. The company’s EBITDA also showed a steady rise, reaching ₹713.329 Crores in FY25, up from ₹583.548 Crores in FY24 and ₹468.030 Crores in FY23.

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