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Elevate Campuses Sets IPO Band, Plans ₹750 Crore Debt Cut
Elevate Campuses is a company that provides student housing, schools and campus services in India.
It plans to sell new shares to the public through an IPO.
The company wants to use ₹750 crore of that money to pay down some of its debt.
Its debt is currently about ₹3,400 crore.
After the payment, debt could fall to roughly ₹2,600-2,700 crore.
Lower debt could reduce the interest the company pays.
Company executives expect this to help profit margins keep improving.
The IPO will be available from September 23 to September 25 at ₹343-362 per share.
Elevate Campuses will use ₹750 crore from its IPO to reduce debt from about ₹3,400 crore to ₹2,600-2,700 crore.
The company set its IPO price band at ₹343-362 per share, targeting a market capitalisation of ₹6,100 crore.
The entirely fresh issue opens for subscription on September 23 and closes on September 25, with no offer-for-sale component.
Debt-to-EBITDA is expected to decline from 6-7 times historically to about 5 times, and potentially near 4 times after projected EBITDA growth by March 2027.
The company reported about ₹807 crore in revenue, with student accommodation contributing 55% of EBITDA and K-12 schools 45%.
- Who
- Elevate Campuses, board director Mukesh Tiwari and CEO Narasimha Jayakumar.
- What
- Elevate Campuses is launching an IPO and plans to use ₹750 crore of the proceeds to reduce debt.
- Where
- India, where the company operates student housing, K-12 schools and campus services.
- When
- The IPO subscription period is September 23-25; projected EBITDA growth is referenced through March 2027.
- Why
- To reduce leverage and interest costs while supporting continued margin improvement.
Key facts
- IPO price band
- ₹343-362 per share
- IPO structure
- Entirely fresh equity issue with no offer-for-sale component
- Target market capitalisation
- ₹6,100 crore
- Planned debt reduction
- ₹750 crore
- Current debt
- About ₹3,400 crore
- Latest reported revenue
- About ₹807 crore
- Blended EBITDA margin
- 78%
Quotes
Narasimha Jayakumar
CEO of Elevate Campuses
“This is a very operations-intensive business, not just real estate”
CNBC TV 18
“We would like to maintain the same trajectory going forward”
CNBC TV 18
Sources
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