Table Space Hits Sebi Hurdle Over Disputed 20% Founder Stake Classification Ahead of ₹800-Crore IPO

Bengaluru-headquartered managed workspace provider Table Space Technologies Ltd has encountered a major regulatory challenge ahead of its planned initial public offering (IPO). A bitter family dispute over the ownership of nearly a quarter of the company's pre-offer equity has reached the capital markets regulator, the Securities and Exchange Board of India (Sebi).

The controversy centres on the shareholding left behind by co-founder Amit Banerji, who passed away 19 months ago. The inheritance of his equity has triggered a legal contest between his mother, Sarita Banerji, and his widow, Shruti Banerji, representing herself and their minor daughter.

The Sebi Representation

The conflict escalated after Shruti Banerji submitted a formal communication to Sebi on August 29, challenging the company’s decision in its draft red herring prospectus (DRHP) to classify Sarita Banerji as a promoter.

The contested equity represents more than 20% of the company's pre-IPO capital base. In her complaint to the market watchdog, Shruti Banerji questioned the legitimacy of designating the late co-founder’s mother as part of the promoter group while active ownership and succession claims remain legally contested. Under Sebi regulations, accurate classification of promoters is essential because promoter stakes carry mandatory post-issue lock-in periods, strict disclosure requirements, and defined legal liabilities.

IPO Structure and Corporate Backing

Table Space filed its DRHP with Sebi in August, seeking to raise capital through:

• A fresh issue of equity shares aggregating up to ₹800 crore.
• An offer for sale (OFS) of up to 65.48 million equity shares with a face value of ₹1 each.

The OFS includes up to 49.83 million equity shares by investor-promoter selling shareholder AGS TS II Holdings Pte. Ltd, an entity owned and managed by private equity firm Hillhouse Investment. Individual promoters Karan Chopra and Kunal Mehra are slated to offload up to 1.31 million shares and 10.07 million shares, respectively, with additional shares offered by other minority holders.

The issue is being managed by a banking consortium comprising Axis Capital, BofA Securities India, CLSA India, IIFL Capital Services, and JM Financial.

Operational Scale and Financial Profile

Table Space caters primarily to Fortune 500 corporations and global capability centres (GCCs) through enterprise-grade managed workspace solutions. According to real estate consultant data cited in the DRHP, the company operated a leased footprint of 9.33 million square feet as of March 31, 2026.

For the financial year ended March 31, 2026, Table Space reported normalised revenue of ₹2,477.68 crore, marking a 56.42% increase year-on-year. Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 124.36% to ₹453.79 crore.

Implications for Market Debut

The flex-space and managed office sector in India has witnessed rapid institutionalisation, with players such as Awfis Space Solutions, Smartworks, and WeWork India preparing or completing public listings.

However, unresolved promoter disputes have historically prompted Sebi to seek exhaustive disclosures, defer approval, or require clarifications before granting clearance to draft offer documents. Because the disputed stake involves over one-fifth of the equity, institutional and retail market participants will closely watch whether the regulator mandates restructuring of the promoter group disclosures or delays the timeline of the public issue.

Tags: Table Space Technologies SEBI IPO Hillhouse Investment Managed Workspace Commercial Real Estate