Elevate Campuses IPO Day 2 Update: Subscription, GMP, and Key Insights

The Elevate Campuses initial public offering (IPO) entered its second day of bidding on Thursday, September 24, attracting a measured response from investors. The IPO subscription period remains open through September 25, giving potential investors more time to submit bids. Despite a positive grey market premium (GMP) of approximately 1%, reflecting a Rs 5 premium over the upper price band of Rs 362, market enthusiasm appears moderate with subdued listing expectations.

The Rs 2,100 crore IPO is a fresh issue comprising 5.80 crore equity shares priced between Rs 343 and Rs 362 each. There is no Offer for Sale component, meaning all proceeds from the offering will directly benefit the company. The shares are slated for listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on September 30, 2026, with allotment results expected by September 28.

On the first day of bidding, the IPO recorded an overall subscription of 20% against the 3.36 crore shares on offer. The Retail Individual Investors (RII) segment saw a 13% subscription, with bids for 61.22 lakh shares. Non-Institutional Investors (NIIs) subscribed 30% of their allocated 91.83 lakh shares, while Qualified Institutional Buyers (QIBs) showed 18% subscription against 1.83 crore shares.

Grey market activity places the stock at a modest premium, with the estimated listing price around Rs 367 per share. However, as GMP is an unofficial indicator, it may fluctuate with changing market sentiment and demand dynamics before the official listing.

Financial analysis from Sushil Finance highlights Elevate Campuses’ robust growth trajectory. The company’s revenue climbed at a compound annual growth rate (CAGR) of 29%, reaching Rs 603.39 crore in fiscal 2026. Earnings per share (EPS) improved significantly from Rs 4.48 to Rs 17.81, and return on net worth (RONW) increased from 6.05% to 18.17%. The company recorded a 53.10% growth in total income between fiscal 2025 and 2026, alongside a striking 112.55% jump in EBITDA during the same period.

Elevate Campuses operates a sizable student accommodation portfolio with 78,542 beds, substantially larger than other organized players in the sector. The occupancy rate stood strong at 89.37% for the academic year 2025-26. Additionally, long-term contracts with higher education institutions include minimum occupancy guarantees and rent hikes indexed to inflation, providing stable revenue streams. The firm also has a K-12 education business in Dubai, adding diversification to its income sources.

The IPO proceeds, estimated netting Rs 1,850 crore, will primarily fund the acquisition of K-12 educational campuses valued at Rs 1,100 crore, fueling the company’s strategic expansion plans. Another Rs 750 crore will be allocated to prepaying outstanding debts of the company and select subsidiaries, helping to strengthen its balance sheet. Remaining funds will support future acquisitions and general corporate purposes.

Elevate Campuses reported a 53% increase in total income, rising from Rs 394 crore in fiscal 2025 to Rs 603 crore in fiscal 2026. Profit after tax (PAT) surged 249%, from Rs 50 crore to Rs 174 crore during the same period, signaling improved profitability and operational efficiencies.

Founded in 2005, Elevate Campuses Ltd specializes in education infrastructure, managing student housing for higher education institutions under the brands Good Host Spaces and ScholarZ, alongside K-12 school assets. As of March 31, 2026, its portfolio covered 15 Indian cities and one city in the UAE, including seven owned campuses with 20,368 beds and 14 managed campuses offering 55,487 beds.

The company’s clientele includes reputed institutions such as Manipal Academy of Higher Education, Manipal University Jaipur, and Meraki Education. Its owned student accommodation recorded a healthy occupancy rate of 89.37% for the 2025-26 academic year, reflecting sustained demand for quality student housing.

Brokerage Sushil Finance has given the IPO a "Subscribe" rating, recommending it for investors with a medium- to long-term outlook based on the company’s strong fundamentals and growth potential. However, as with all investments, prospective investors should evaluate their risk tolerance and consult original research reports before making decisions.

Book-running lead managers for the issue include JM Financial, IIFL Capital Services, and Morgan Stanley India, with KFin Technologies handling the registrar duties.