Elevate Campuses plans to raise ₹2,550 cr via IPO in August
AI Summary
Elevate Campuses is set to raise ₹2,550 crore through its IPO in August, focusing entirely on expanding its education infrastructure. The funds will primarily be used to acquire 14 K-12 school assets and repay debt, positioning the company to capitalize on India's growing education sector, which is projected to see substantial growth in both K-12 and higher education infrastructure. With a robust portfolio and strategic expansions, Elevate aims to enhance its capacity to serve over 102,000 students across India and the UAE.
Education infrastructure platform Elevate Campuses plans to raise ₹2,550 crore through its initial public offering (IPO) in August.
The IPO will only feature fresh issue of equity shares with no Offer for Sale, ensuring that the entire proceeds will be deployed towards expanding the company’s education infrastructure platform.
Of the net proceeds, ₹1,100 crore will be used to acquire a portfolio of 14 K-12 school assets and campuses from affiliates of its promoters, significantly expanding its school infrastructure portfolio.
Another ₹750 crore will be used to repay debt, while the balance will support strategic acquisitions and general corporate purposes.
The acquisition builds on Elevate’s existing K-12 platform, which currently comprises 18 assets, including 13 operational schools, three planned schools and two student accommodation facilities managed by higher education institutions.
The portfolio also includes premium international school assets in Dubai, namely Hartland International School and North London Collegiate School.
Operating under the Good Host Spaces and ScholarZ brands, the company has the capacity to serve over 102,000 students across 21 cities in India and the UAE, including a portfolio of 66,272 student beds, about 1.7 times larger than its nearest competitor.
The company recently commenced construction of two student accommodation blocks at IIT Madras under the Public-Private Partnership model. The project, which will accommodate more than 1,800 PhD students and project staff, is expected to be completed by mid-2028.
According to the CBRE Report, India’s education sector is witnessing robust structural growth, driven by an education-seeking population of 50.8 crore, rising private participation, urbanisation and increasing demand for quality education infrastructure.
While professionally managed student accommodation currently caters to less than 0.5 per cent of higher education enrolments, the private school tuition market is projected to reach ₹2.49 lakh crore by AY2027-28, underscoring the significant long-term opportunity across both K-12 and higher education infrastructure.
Student accommodation with specialised services to the Gen-Next is growing in India and presents a $4 billion revenue opportunity by AY2028E, as per CBRE report.
Original Article
Published on Hindu BusinessLine