The ₹2,100 crore IPO of Elevate Campuses entered its third and final day of bidding on Friday, September 25, with the issue seeing a relatively measured response from investors. According to NSE data, the issue was subscribed 25% overall as of 10:30 am on Day 3, with bids received against the 3.36 crore shares on offer. The retail portion was also subscribed 28%, with investors bidding for the 61.22 lakh shares reserved for that category. The NII category received 34% subscription against the 91.83 lakh shares offered, while the QIBs category was subscribed 18% against 1.83 crore shares. The IPO opened for subscription on September 23 and will close today, September 25, with shares priced between ₹343-362 per share and will remain open until Friday, September 25. The company issued 2.61 crore equity shares to anchor investors on September 22 at the upper end of the price band, with 1.65 crore shares (63.49%) allocated to eight domestic mutual funds through 24 schemes. As per InvestorGain, the basis of allotment for Elevate Campuses IPO is likely to be finalised on September 28, with shares set to debut on NSE and BSE on September 30.
According to Business Standard, Elevate Campuses has demonstrated exceptional financial performance with consolidated sales increasing 53.8% to ₹568.63 crore in FY2026 from ₹369.81 crore in FY2025**. Operating profit rose 67% to ₹405.32 crore, while operating profit margin expanded to 71.28% from 65.64%. The company's profit before tax after exceptional items rose 155.9% to ₹203.76 crore, while profit after tax increased 249.3% to ₹173.76 crore in FY2026. As per CNBC TV18, the company has demonstrated exceptional financial performance with revenue growing at 20% CAGR over the past three years, significantly outpacing the 5-6% contractual escalations built into its university and school agreements. The company's EBITDA has grown even faster at 26% CAGR, driven by new assets and its services business. CEO Narasimha Jayakumar highlighted that the company has significant operating leverage and is not just a real estate play, emphasizing its position as India's largest player in student accommodation. As per Sushil Finance, the company's 78,542-bed portfolio is substantially larger than those of the next-largest organised student-accommodation players, with an occupancy rate of 89.37% for Academic Year 2025-26.
The IPO proceeds will be strategically deployed to strengthen the company's balance sheet and expand its asset base. As per Business Standard, ₹1,100 crore will be used to acquire K-12 school assets from subsidiaries of its promoters, with the company planning to acquire six special purpose vehicles that have investments in 16 K-12 assets with a combined bed/student capacity of 24,086. The six SPVs reported revenue of ₹238.29 crore in FY2026 and had total assets of around ₹1,604.12 crore and net worth of ₹695.67 crore as of March 31, 2026. Additionally, ₹750 crore will be allocated for debt repayment, which will reduce net debt from around ₹4,120.53 crore to about ₹3,370 crore and lower annual interest costs. As of March 31, 2026, the company's consolidated borrowings stood at ₹4,120.53 crore, with the proposed repayment expected to significantly reduce interest costs. As per The Economic Times, the remaining proceeds will be allocated towards unidentified acquisitions, other strategic initiatives and general corporate purposes.
According to Business Standard, Elevate Campuses operates as an education infrastructure company that owns, operates and manages on-campus student accommodation for higher education institutions and owns K-12 school assets. As of March 31, 2026, the company's pre-acquisition group had student accommodation capacity of 80,255 students across 15 cities in India and one city in the UAE. Its portfolio included seven owned student accommodation campuses with 20,368 beds across six Indian cities and 2 K-12 assets in Dubai with a total student capacity of 4,400. Its managed portfolio comprised 14 student accommodation campuses with 55,487 beds under management. The company operates student accommodation under the Good Host Spaces and ScholarZ brands, partnering with prestigious higher education institutions including Manipal Academy of Higher Education, Manipal University, Jaipur and Meraki Education. The business model combines contracted, annuity-like cash flows from leases with several minimum-occupancy guarantees, layered with revenue from ancillary services including food, security, and facility management. As per Sushil Finance, the company's K-12 education business in Dubai provides an additional revenue stream, while the fresh-issue-only structure means the entire ₹2,100 crore raised through the IPO will accrue to the company rather than existing shareholders through an OFS.
In the grey market, Elevate Campuses shares were commanding a premium of nearly 1% on the morning of September 25, according to InvestorGain, indicating expectations of a listing close to the issue price. The grey market premium (GMP) is an unofficial indicator and can change before listing. It does not guarantee the actual listing price or post-listing returns. Ahead of the IPO, Elevate Campuses raised ₹945 crore through its anchor book from 40 investors, with the company allotting 2.61 crore equity shares to anchor investors on September 22 at the upper end of the price band. The anchor allocation included 1.65 crore shares worth ₹600 crore to eight domestic mutual fund houses including SBI Mutual Fund, HDFC AMC, WhiteOak Capital, Mirae Asset, Bandhan MF, PGIM India, Edelweiss and Groww MF. The anchor book also saw participation from global investors such as Citigroup, BofA Securities, Societe Generale, Integrated Core Strategies (Asia), Amundi Funds and Government Pension Fund Global. JM Financial, IIFL Capital Services and Morgan Stanley India Company are acting as the merchant bankers for the IPO, while KFin Technologies is the registrar. Sushil Finance has assigned a "Subscribe" recommendation to the IPO for investors with a medium- to long-term investment horizon, citing the company's strong revenue growth, high occupancy rates, and planned acquisitions in education infrastructure.
