Co-working firm Executive Centre to raise Rs 2,600 cr via fresh issue

Bengaluru-based The Executive Centre (TEC) plans to raise Rs 2,600 crore via a fresh issue of equity shares and has filed its Draft Red Herring Prospectus (DRHP) with SEBI for the proposed issue

Co-working company The Executive Centre (TEC) will raise Rs 2,600 crore in a fresh issue of Rs 2 per equity share and has filed a preliminary document with the Securities and Exchange Board of India on NSE and BSE, it said in a statement.

 

Bengaluru-based TEC will use the net proceeds to invest in TEC Abu Dhabi, a direct subsidiary, and to partly fund the acquisition of TEC SGP and TEC Dubai, both step-down subsidiaries held by TEC Singapore, one of its promoters.

 

Kotak Mahindra Capital Company, ICICI Securities, and Nomura Financial Advisory and Securities (India) are the book running lead managers (BRLM) to the issue. 

TEC did not disclose the offer for sale but said that in consultation with the BRLMs it may choose to raise up to Rs 520 crore by issuing specified securities through a preferential offer or any other permitted method. That will be done before filing a Draft Red Herring Prospectus with the Registrar of Companies and would be considered a pre-placement for an initial public offer. 

Manish Khedia, managing director, West India, South India and Sri Lanka, TEC, told ‘Business Standard’ in March: “In the next three years, we anticipate significant growth, aiming for a 25-30 per cent CAGR, up from our current 18-20 per cent rate. Additionally, we plan to increase our investments during this period.”

 

TEC was founded in 2008 to provide ultra-premium flexible space solutions in India, Singapore, West Asia (comprising Dubai and Abu Dhabi in the United Arab Emirates), and the rest of Asia (Jakarta in Indonesia, Ho Chi Minh City in Vietnam, Manila in the Philippines, and Colombo in Sri Lanka). 

 

The company leases bare shell spaces and turns them into “tech-enabled, fully managed premium workspaces”. As of March 31, it operated 89 centres in 14 cities in seven countries.

 

The company’s partnership portfolio includes Earnest Towers, Panchshil Corporate Park, Prestige Estates Projects, RMZ, Sattva Group, Dubai World Trade Centre LLC, and Alborz Developers, a subsidiary of Bharti Realty.

 

In FY25, the company served more than 1,550 clients comprising multinationals and small- and medium-sized enterprises. Some marquee clients include Anaplan Middle East, ArcelorMittal Nippon Steel India, BBVA, Indian School of Business, Sandvik, GreenOak India Investment Advisors, Truecaller, Zscaler, Open Text, and National Payments Corporation of India.

 

The company reported a total income of Rs 1,346.40 crore in FY25, up 27.58 per cent from Rs 1,055.32 crore the previous year. Revenue from operations grew 27.59 per cent to Rs 1,322.64 crore. Earnings before interest, taxes, depreciation and amortisation rose to Rs 713.33 crore, compared to Rs 583.55 crore in FY24 and Rs 468.03 crore in FY23.

 

TEC’s partners include Earnest Towers, Panchshil Corporate Park, Prestige Estates Projects, RMZ, Sattva Group, Dubai World Trade Centre LLC, and Alborz Developers Limited, a subsidiary of Bharti Realty.