Mumbai: Elevate Campuses Limited has signed a securities subscription agreement to invest USD 6,20,15,000.25 (approximately ₹601 crore) in its material wholly-owned subsidiary, Elevate UAE Assetco Holdings Pte. Ltd. (Elevate UAE).
Investment Details
The investment involves subscribing to 59,061,905 Class A Optionally Convertible Redeemable Preference Shares (OCRPS) to be issued by Elevate UAE. The issue price is USD 1.05 per OCRPS.
Strategic Rationale
The company said this investment aligns with its initial public offering (IPO) disclosures. A portion of the IPO proceeds was earmarked for infusion into subsidiaries to prepay or repay outstanding borrowings.
Subsidiary Information
Elevate UAE Assetco Holdings Pte. Ltd. is incorporated in Singapore with registration number 202434652R. Its registered office is at 36 Robinson Road, #20-01, City House, Singapore 068877.
Financial Standing of Subsidiary
As of 31 March 2026, Elevate UAE had a net worth of ₹1197,81,76,811. The company reported nil turnover for the financial year 2025-26 and the preceding three financial years.
Related Party Transaction
The investment is a related party transaction but is exempt from prior approval requirements. This is because it is a transaction between a holding company and its wholly-owned subsidiary, executed on an arm's length basis.
Utilisation of Funds
The funds from the OCRPS issuance will be used by Elevate UAE to partially or fully prepay/repay outstanding borrowings. These borrowings were availed by Souk HIS Holdings Limited, UAE, a step-down wholly-owned subsidiary of Elevate UAE.
Transaction Timeline
The closing of this transaction is scheduled to be completed by October 2026. The securities subscription agreement was signed on 8 October 2026.
Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.
