- Hillhouse-backed Elevate Campuses raised Rs 945 crore from anchor investors for its Rs 2,100 crore IPO
- Anchor portion fully subscribed a day before public subscription starting on Sept 23
- Top investors include SBI Mutual Fund, HDFC Mutual Fund, and Norges Bank Investment Management
Hillhouse-backed Elevate Campuses Limited has raised Rs 945 crore from anchor investors, representing the maximum permissible allocation and 60% of the qualified institutional buyer (QIB) portion of its Rs 2,100 crore initial public offering (IPO).
The anchor portion of the issue was fully subscribed a day ahead of the IPO opening for public subscription on Wednesday, Sept. 23.
The anchor book saw strong participation from both domestic and international mutual funds. SBI Mutual Fund emerged as the largest investor, while other prominent participants included HDFC Mutual Fund, 360 One, White Oak Mutual Fund, Mirae Asset Management and Bandhan Mutual Fund.
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Insurance companies, including Tata AIG General Insurance, also participated in the anchor book. More than 20 investors took part in the allocation, including Norges Bank Investment Management, which manages Norway's Government Pension Fund Global.
The Rs 2,100 crore IPO will be entirely a fresh issue, with no offer-for-sale component. The public issue will open on Sept. 23 and close on Sept. 25.
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Elevate Campuses is an institutionalised and independent education platform focused on owning, operating and managing on-campus student accommodation across higher education institutions, as well as owning K-12 education assets in India and the Middle East.
According to the company's Red Herring Prospectus dated Sept. 17, its owned portfolio comprised seven student accommodation campuses with 20,368 beds as of March 31, 2026. Its managed portfolio comprised another 14 campuses with 55,487 beds.
The company also operates 18 schools across India and the UAE. Its owned-book occupancy stood at 89.37% for the 2025-26 academic year.
Elevate has reported Ebitda margins of more than 75%, which it attributes to its contracted-lease business model. The company has partnerships with several higher education institutions, including IIT Madras, Manipal Academy of Higher Education, O.P. Jindal Global University, Shoolini University, IIIT-Bangalore and UPES.
The company's business model combines long-term contracted cash flows from its education-related assets with ancillary services. Its higher education leases typically run for 50-60 years, with several agreements also carrying minimum-occupancy guarantees.
Alongside rental income, the company generates revenue from ancillary services such as food, security and facility management. This gives the business characteristics of a hybrid between a real estate investment trust (REIT), a hospitality operator and a consumer-facing services business.
Use Of IPO Proceeds
According to the RHP, the net proceeds from the IPO will primarily be used to fund the acquisition of 14 K-12 entities and campuses currently held by fellow subsidiaries of the promoter group.
A portion of the proceeds will also be used towards the repayment or prepayment of existing borrowings. The proposed utilisation therefore combines portfolio consolidation with deleveraging.
The IPO is being managed by JM Financial, IIFL Capital Services and Morgan Stanley India, which are acting as the book-running lead managers.
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