Elevate Campuses IPO Closes Day 3 with Measured Bids and 1% GMP

The Rs 2,100-crore initial public offering of education infrastructure provider Elevate Campuses closed for bidding on Friday, September 25, 2026, recording a measured investor response across categories. The entirely fresh equity issue, priced between Rs 343 and Rs 362 per share, saw an overall subscription of 23 percent by the close of Day 2, alongside a modest grey market premium of 1 percent pointing to an estimated listing near the issue price.

Market observers note that grey market premiums operate in an unregulated environment with inherent risks, volatility, and potential for manipulation, meaning such indicators should not be treated as definitive. Regulatory frameworks also provide for monitoring agency reports regarding IPO proceeds utilization under specific SEBI regulations.

Ahead of the final bidding hours, the company secured Rs 945 crore from 40 anchor investors, including domestic mutual fund houses and global institutional participants. Book-running lead managers for the offering include JM Financial, IIFL Capital Services, and Morgan Stanley India, with KFin Technologies serving as the official registrar for the mainboard issue.

Investor participation remained measured across all segments through the second day of bidding. The Retail Individual Investors category attracted bids for 23 percent of the 61.22 lakh shares reserved for retail participants. Meanwhile, the Non-Institutional Investors segment registered a 33 percent subscription against the 91.83 lakh shares offered.

Institutional demand through the Qualified Institutional Buyers category stood at 18 percent of the 1.83 crore shares earmarked for institutional allotments. Overall, bids were placed for approximately 7.70 crore shares against the total issue size of 3.36 crore equity shares available on offer before final closing tallies were computed.

Financial disclosures in the offering documents highlight rapid acceleration in revenue and profitability for the fiscal year ended March 31, 2026. Total income surged 53.10 percent in FY2026 to reach Rs 603.39 crore, compared with Rs 394.13 crore in FY2025, while profit after tax expanded sharply to Rs 174 crore from Rs 50 crore in the preceding fiscal period. Diluted earnings per share climbed from Rs 4.48 to Rs 17.81 over the same timeframe.

Sushil Finance issued a Subscribe recommendation for investors with a medium- to long-term horizon. The brokerage cited the firm's scaled operating footprint, extensive bed capacity under management, and long-term institutional contracts featuring minimum occupancy guarantees and inflation-linked escalations as key operational buffers.

The K-12 model involves managing lease arrangements with school operators instead of directly operating academic institutions. These agreements feature rental escalations generally between 3% and 5% along with minimum lock-in periods generally spanning 10 to 29 years.

Gross proceeds amounting to Rs 2,100 crore will accrue entirely to the company through the fresh issue structure, with zero offer-for-sale component from existing shareholders. Net proceeds of approximately Rs 1,850 crore have been designated for specific corporate growth vectors, led by a Rs 1,100 crore outlay to acquire K-12 entities and educational campuses from promoter-affiliated entities.

An additional Rs 750 crore will be channeled toward the repayment or prepayment of outstanding borrowings held by the parent entity and wholly owned subsidiaries, including GHS Shoolini, GHS Sonipat, Data Ram Sons, Souk HIS UAE, and Souk NLCS UAE. Remaining funds will support unidentified inorganic acquisitions and general corporate purposes.

Incorporated in 2005, Elevate Campuses operates student accommodation assets under the Good Host Spaces and ScholarZ brands alongside K-12 school infrastructure. As of March 31, 2026, the pre-acquisition group managed a capacity of 80,255 student beds across 15 Indian cities and one municipality in the United Arab Emirates.

The portfolio comprised seven owned student accommodation campuses encompassing 20,368 beds across six Indian cities, alongside 14 managed campuses totaling 55,487 beds. The company recorded an occupancy rate of 89.37 percent for its owned accommodation portfolio during the 2025-26 academic year, maintaining partnerships with institutions such as the Manipal Academy of Higher Education and Meraki Education.

The basis of allotment for the public issue is slated for finalization on September 28, 2026, with equity shares tentatively scheduled to commence trading on the National Stock Exchange and Bombay Stock Exchange on September 30, 2026.