• IPO issue structure: Elevate Campuses is launching a ₹2,100 crore entirely fresh issue IPO at an implied market capitalization of ₹6,100 crore, diluting promoter Hillhouse's 100% holding to approximately 66%.
• Use of proceeds: From the net proceeds, ₹1,100 crore will be utilized to acquire a 16-school K-12 India portfolio from promoter entities, ₹750 crore will go toward debt repayment, and roughly ₹250 crore is allocated for general corporate purposes.
• Portfolio and performance: The company owns 20,000 to 21,000 beds, manages 55,000 beds, and operates 16 schools in India plus 2 schools in Dubai, while recording 20% revenue growth and 26% EBITDA growth over the past three years.
• Pipeline and capital expenditure: The firm is developing an on-campus doctoral housing DBFOT project at IIT Madras over a 15-month timeline and plans to invest around ₹170 crore over the next two years to expand existing assets.
• Addressable market opportunity: Out of 1.10 crore migrant students in India's 5-crore higher education market, the company targets an addressable demand of at least 25 lakh on-campus beds compared to its current footprint of 75,000 to 80,000 beds.