IPO Alert: Executive Centre India Files DRHP with SEBI to Raise ₹2,600 Crore

Executive Centre India has filed its draft red herring prospectus(DRHP) with SEBI for an initial public offering (IPO) worth ₹2,600 crore. The IPO will consist entirely of a fresh issue of equity shares, with no offer-for-sale component. A pre-IPO placement of up to ₹520 crore is also possible, which could reduce the final issue size.

Use of Proceeds

As per the reports, the funds will be used to invest in its subsidiary TEC Abu Dhabi and to acquire two step-down subsidiaries, TEC SGP and TEC Dubai, from TEC Singapore, one of its promoters. The transaction is part of an internal restructuring agreement. Remaining proceeds will be allocated for general corporate purposes.

Global Expansion 

The company operates in 14 cities across seven countries and plans to use the capital to strengthen its presence in Asia-Pacific and the Middle East. As of March 31, 2025, it had 89 centres, including 80 private office locations and 6 managed offices in India and the Middle East.

Executive Centre India Financial Performance

Total income increased from ₹772.11 crore in FY23 to ₹1,346.40 crore in FY25. Revenue from operations reached ₹1,322.64 crore in FY25, up 27.59% year-on-year. Despite the growth, net losses widened, from ₹7.36 crore in FY23 to ₹80.61 crore in FY25, mainly due to higher lease and finance costs tied to expansion. 

EBITDA rose to ₹713.33 crore in FY25 from ₹468.03 crore in FY23. EBITDA margins, however, declined to 53.93% in FY25 from 61.31% in FY23. 

Read More: Tata Capital Submits Updated DRHP for IPO Including Offer for Sale and Fresh Issue!

Client Retention and Occupancy

The company follows an asset-light model, leasing bare-shell properties and converting them into premium office spaces. As of March 2025, average client tenure stood at 48.97 months, while newly launched centres recorded an average pre-sale occupancy of 64.33%.

Conclusion

Executive Centre India’s proposed IPO aims to support global expansion and internal restructuring. The offering is fully fresh equity and will be listed on BSE and NSE post-approval.

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