The initial public offering (IPO) for Elevate Campuses, a leading education infrastructure company, commenced subscriptions today, September 23. The Mumbai-based firm is seeking to raise a substantial Rs 2,100 crore through a fresh issue of 5,80,11,049 equity shares.
About Elevate Campuses
Incorporated in 2005, Elevate Campuses specializes in owning, operating, and managing on-campus student accommodation for higher education institutions (HEIs), alongside owning K-12 school assets. The company operates its student accommodation business under the brands Good Host Spaces and ScholarZ. Its diversified portfolio includes 78,542 beds, significantly larger than its closest competitors, boasting an occupancy rate of 89.37%.
IPO Details and Financial Performance
The IPO price band has been set between Rs 343 and Rs 362 per equity share. Investors can bid for a minimum of 41 shares, and in multiples thereafter. The subscription window will close on Friday, September 25. Ahead of the public launch, Elevate Campuses successfully raised Rs 945 crore from 40 anchor investors, allocating 2,61,04,972 equity shares at Rs 362 apiece.
The net proceeds from the issue are earmarked for several strategic purposes:
- Acquisition of K-12 entities and campuses.
- Repayment of debt incurred by the company and its subsidiaries.
- Funding inorganic acquisitions.
- General corporate purposes.
Financially, Elevate Campuses reported a net profit of Rs 173.76 crore on a revenue of Rs 603.39 crore for the financial year ending March 31, 2026. This marks significant growth from the previous fiscal year (FY2024-25), where the company posted a net profit of Rs 49.74 crore with a revenue of Rs 394.13 crore.
Grey Market Premium (GMP) and Listing
Market observers noted a grey market premium (GMP) of approximately Rs 5-6 for Elevate Campuses shares, suggesting a modest 1-2% listing gain for investors. The shares are scheduled for listing on both BSE and NSE on September 30.
Analyst Recommendations
Several brokerage firms have provided their views on the Elevate Campuses IPO:
SBI Securities: Neutral
SBI Securities highlighted the company's strong revenue, EBITDA, and adjusted PAT CAGR of 28%, 37.4%, and 17.6% respectively from FY24-FY26. While acknowledging the proposed debt repayment, they noted the overall debt size remains elevated. Valuing the company at 88.6 times Adjusted P/E and 19.4 times EV/EBITDA, they assigned a 'neutral' rating, preferring to track post-listing performance.
Sushil Finance: Subscribe for Long-Term
Sushil Finance emphasized Elevate Campuses' dominant market position in student accommodation, supported by long-term HEI contracts with minimum-occupancy guarantees and inflation-linked escalations. They also noted the K-12 diversification into Dubai, offering a higher-margin annuity stream. Given that it's a 100% fresh issue, aligning promoter and public shareholder interests, they recommended 'subscribe' for investors with a medium-to-long-term horizon.
BP Equities: Subscribe
BP Equities recommended a 'subscribe' rating for medium- to long-term investors, citing the company's scale, strong earnings growth, high occupancy rates, clear revenue visibility, and multiple growth avenues across both student accommodation and K-12 education. They valued the issue at 20.3 times P/E and 13.8 times EV/EBITDA.
Master Capital Services: Subscribe for Long-Term
Master Capital Services views Elevate Campuses as well-positioned to capitalize on sector growth through its presence in owned and managed student accommodation and K-12 assets. They cited established relationships with HEIs, growing bed capacity, and an asset-light managed model as key strengths, recommending a 'subscribe for long-term' view.
Ventura Securities: Subscribe
Ventura Securities noted Elevate Campuses' expansion through organic growth and acquisitions, operating via a combination of asset ownership and asset-light campus management. They highlighted the company's end-to-end infrastructure and operating services for educational institutions, issuing a 'subscribe' rating.
Kunwarji Financial Services: Subscribe for Long-Term
Kunwarji Financial Services recommended subscribing to the IPO with a long-term view, stating that the company is well-positioned to capitalize on the increasing demand for quality student accommodation and K-12 infrastructure, supported by its established presence and scalable growth opportunities.
JM Financial Ltd, IIFL Capital Services, and Morgan Stanley India are the book-running lead managers for the IPO, with Kfin Technologies Ltd serving as the registrar.