Executive Centre India IPO: Workspace Space Solutions Provider Set To Launch Rs 2,600 Crore Public Issue

Executive Centre India’s initial public offering (IPO) has received approval from the Securities and Exchange Board of India (Sebi). The company seeks to raise Rs 2,600 crore through its public issue.

The price band and key dates for the public issue have not been announced yet. Here are some of the key details related to the mainboard issue based on the company’s draft red herring prospectus (DRHP), which investors should know:

Executive Centre India IPO: Offer Size

Executive Centre India’s issue consists completely of a fresh issue of shares aggregating to Rs 2,600 crore. The book running lead manager is Kotak Mahindra Capital Co and the registrar for the issue is Kfin Technologies.

Executive Centre India IPO: Key Financials

The company’s total income increased by over 27 per cent to Rs 1,346.40 crore in the financial year ended March 31, 2025 compared to Rs 1,055.32 crore in the preceding fiscal. The company posted a net loss of Rs 80.61 crore in FY 2024-25 compared to a net loss of Rs 56.32 crore in the preceding fiscal.

Executive Centre India: Business Model

Executive Centre India offers premium flexible workspace solutions to clients across India, Singapore, the Middle East, and rest of Asia. The company generates revenue by leasing office spaces from landlords across these markets and designs, builds, and operates them as premium flexible workspaces for its customer base.

The company’s clients include multinational corporations (MNCs), small and medium enterprises (SMEs) and other legal entities. In FY25, the company served over 1,550 unique clients, including over 1,200 MNCs and over 23,000 individual employees of its clients and individuals of co-working spaces and virtual office contracts. As on March 31, 2025, the company’s portfolio comprised 89 operational centres across 14 cities in seven countries.

Executive Centre India: Competitors

According to the company’s DRHP, it operates in the premium flexible workspace category, where competition is deemed to be relatively limited in relation to the overall flexible workspace market. However, the company’s listed peers include other flexible workspace providers, such as Awfis, IndiQube, Smartworks and WeWork India.

Executive Centre India IPO: Should You Apply?

Here’s a look at the strengths and risks mentioned by the office space producer which investors must consider before applying for the public issue:

Executive Centre India: Key Risks

Here’s a look at some of the key risks related to Executive Centre India’s business according to the company’s RHP.

• The company has incurred losses in the past fiscals, and the trend may continue in the future. Failure to generate profits could adversely impact the business.

• The company added that it has entered into long-term lease agreements for a total leasable area of 1.80 million square feet across 86 of its 89 operational centres. Thus, any inability to renew its lease agreements could materially and adversely impact its business, financial condition, cash flows, results of operations and prospects.

• The co-working space solutions provider added that it primarily generates revenue in the form of license fees from operations. Thus, if clients prematurely terminate their license agreements, or fail to renew their license agreements, the company’s business and financial condition could be adversely affected.

Executive Centre India : Key Strengths

Here’s a look at some of the key strengths of Executive Centre India’s according to the company’s RHP.

• The company claimed in its DRHP that it is one of the early international brands to lead the offering of premium flexible workspace solutions in India, with presence across the key markets in Asia

• The company claims to have a diversified and de-risked portfolio of assets with an established long-term track record that benefits from multiple growth drivers and synergies within the TEC Group.

• The company claims it has premium spaces in Grade A properties in central business districts and key clusters, and it is supported by long-term relationships with reputed landlords.

Executive Centre India IPO: Objective

The company plans to use the money raised through the public issue for investment in TEC Abu Dhabi, its direct subsidiary, for financing part-payment for the acquisition of TEC SGP and TEC Dubai. The proceeds will also be used for fulfilling general corporate purposes.