₹750 crore of fresh equity will trim Elevate Campuses’ debt to ₹2,600‑2,700 crore, cutting its debt‑to‑EBITDA from 6‑7× to about 5×.
The company’s current debt sits at ₹3,400 crore; after the reduction, its leverage ratio will drop to roughly 5×, and with expected EBITDA growth by March 2027 it could tighten to 4×. CEO Narasimha Jayakumar said that lowering interest costs will lift the blended EBITDA margin, which already sits at 78% and has grown 20% CAGR in revenue against 26% EBITDA growth.
The IPO will be priced at ₹343‑362 per share, targeting a ₹6,100 crore market cap. The issue opens for subscription on 23 September and closes on 25 September, with no offer‑for‑sale component from existing shareholders. Hillhouse‑backed Elevate Campuses is poised to raise fresh capital for expansion.
Elevate Campuses runs India’s largest education infrastructure and services business, owning on‑campus student housing for universities such as Manipal and OP Jindal, and leasing K‑12 schools to operators. In the last fiscal year it posted ₹807 crore revenue, with 55% of EBITDA from student accommodation and 45% from K‑12 schools.
The board director Mukesh Tiwari highlighted the company’s long‑tenure debt (15‑20 years) and lenders’ willingness to offer loans at 7‑8× EBITDA per asset, thanks to predictable cash flows. Reducing debt now will free up capacity for further expansion and help maintain the margin trajectory the CEO has forecast.
Investors will now focus on the IPO valuation, the potential for margin improvement, and the company’s guidance for the next quarter. With the debt reduction complete, Elevate Campuses aims to keep expanding its service‑intensive business model while positioning itself for a debt‑free status by mid‑2027.