Elevate Campuses debuts at discount, valued at $625 million
Lists at 1.9% discount to ₹362 issue price; valued at ₹5,995 crore
Indian student housing firm Elevate Campuses made a subdued debut on the stock market on Wednesday, as investors considered the company’s growth potential amidst high debt and revenue dependence. The stock opened at ₹362.50 on the National Stock Exchange of India, trading 1.9 per cent below its issue price of ₹355.10 per share. The IPO priced the company at ₹5,995 crore ($624.74 million), falling short of its anticipated valuation of around ₹6,100 crore.
While Elevate’s asset-light expansion and diversified platform offer growth prospects, elevated leverage, reliance on key institutions, occupancy risks, and significant acquisition costs remain concerns, according to SMC Global Securities. The IPO saw strong demand, with qualified institutional buyers subscribing 1.79 times the shares reserved for them, while non-institutional investors purchased 0.84 times their allotment.
The fresh share sale totaled up to ₹2,100 crore, earmarked for acquiring 16 school infrastructures in Dubai, Hyderabad, Chennai, and Pune. Proceeds from anchor investors, which included Norway’s Government Pension Fund Global, Tata AIG, SBI Mutual Fund, and HDFC Mutual Fund, totaled ₹945 crore prior to the public issue.
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