The subscription window for Elevate Campuses Ltd opens Wednesday, September 23, with the price band set between ₹343 and ₹362 per share. This is a complete fresh issue of 5.8 crore shares, valued at ₹2,100 crore at the upper end. The grey market premium (GMP) stood at ₹16 per share ahead of the opening, signaling initial demand, though these figures are speculative. Retail investors can bid in lots of 41 shares, with a minimum investment of ₹14,842. Only 10% of the issue is reserved for the retail category, while 75% goes to Qualified Institutional Bidders (QIBs) and 15% to non-institutional investors.
The business model is asset-heavy but not an educator itself; it owns and manages student housing and K-12 school buildings. Promoter Hillhouse Investment, Singapore, will see its stake dilute from 100% to 65.58%. The financials show a sharp improvement in profitability. Net profit tripled to ₹207 crore in FY26 from ₹68.1 crore in FY25. Revenue grew 32.2% year-on-year to ₹806.9 crore. More striking is the EBITDA margin, which expanded from 66.5% to 85.9%. This margin expansion is the primary driver for institutional interest, but it comes with caveats.
The use of proceeds is where the risk lies. 52.38% of the ₹2,100 crore—roughly ₹1,100 crore—will be used to acquire 16 K-12 entities from the promoter group. Another ₹750 crore is earmarked for debt repayment. SBI Securities flags this as a red flag. The brokerage house argues that debt levels will remain elevated even after the pre-payment. Furthermore, the company has a history of delayed payments from K-12 operators, with delays ranging from one to six months in recent years. Occupancy rates for owned beds have also slipped from 99.92% in FY24 to 89.37% in FY26.
SBI Securities has a 'neutral' rating on the stock. They are waiting to track post-listing performance for a few quarters before making a call. The upside case rests on the addition of 2,128 beds at IIT Madras and UPES Dehradun, and the scaling of the asset-light managed portfolio. However, the heavy promoter buyback component makes this a risky bet for short-term traders. Long-term investors should focus on the occupancy recovery trend and the actual integration of the acquired K-12 assets. The IPO closes on Friday, September 25.