Elevate Campuses Ltd

Elevate Campuses IPO: Check IPO price band, issue size, GMP, dates, lot size, financials, business model, promoters and key IPO details.

Elevate Campuses IPO: Price, GMP, Date, Details & Analysis

Elevate Campuses buys hostel blocks from universities, leases back the land under them, and runs everything non-academic inside: beds, mess, laundry and security. Revenue grew from 109 cr in FY22 to 569 cr in FY26. Its 50 to 60 year contracts are non-cancellable, with a blended 88% minimum occupancy guarantee, 5% to 6% annual fee escalation, exclusivity against competing university hostels, and a right to sell the building back if occupancy keeps missing. Cash comes in before service: fees are paid upfront, debtor days are four and working capital is negative 7.7 cr. Operating cash flow held at 65 cr, 19 cr and 97 cr over three years. About 1,100 cr of the issue buys 16 K-12 school assets in India from the promoter's other funds, taking pro forma FY26 revenue to [X] cr. The IIT Madras concession, signed in November 2025 for 1,878 beds, is its first public institution. Every current campus is private, and public institutions have far larger student bases with hostel capacity that has not kept pace.

What gave us pause: leverage is high. Borrowings rose from 1,207 cr to [X,121] cr in FY26 for the Dubai and UPES purchases, putting debt to EBITDA at 7.6x and interest cover at 1.27x. Post issue, with the K-12 assets in and 750 cr repaying debt, it falls to around 4.9x. The market is also early. Under 2% of India's 9.3 mn hostel beds are professionally managed, only six operators have more than 5,000 beds, and Elevate holds 0.53% of the addressable market after nine years. The runway is real, but scaling is slow and capital-heavy. At 22x EV/EBIT on reported FY26 and 15x on pro forma, with no listed Indian comparable, the ask is on the higher side for an asset class still unproven here. We would track it. With the current GMP of ~0% (24 September 2026) and retail subscription at 0.3x, the issue points to flat or negative listing gains.