Elevate Campuses Limited has approved a substantial expansion initiative at O.P. Jindal Global University, Sonipat. Through its subsidiary GHS Sonipat II Private Limited, the company will acquire hostel accommodation and allied services, adding 2,450 beds and expanding mess, laundry, and security services. This transaction represents an investment of INR 1,350 crore, to be paid over nine years, significantly increasing Elevate’s managed capacity to 10,500 beds at the university.
Capacity Expansion at O.P. Jindal University Approved
Elevate Campuses Limited, through its Investment Committee, has given the go-ahead for a significant capacity addition project at O.P. Jindal Global University in Sonipat, Haryana. The approved transaction will see its wholly-owned subsidiary, GHS Sonipat II Private Limited, acquire key operational assets.
Acquisition Details
The deal encompasses the acquisition of the hostel accommodation undertaking for 2 hostel blocks (SH12 and SH14), aimed at providing accommodation services for students. Additionally, GHS Sonipat II will acquire the allied services undertaking for 3 hostel blocks (SH11, SH12 and SH14). This includes essential services such as mess, laundry, and security, enhancing the student living experience. This expansion aims to extend services to students residing in these blocks.
Increased Operational Footprint
Currently, GHS Sonipat II provides services in one hostel block (SH 11) at the university. The proposed transaction will significantly broaden its scope, extending services to the additional blocks SH12 and SH14. Upon completion, Elevate Campuses will manage a total of 10,500 beds at the University through its subsidiaries, marking a substantial increase in its operational footprint.
Investment and Transaction Timeline
The overall investment for this expansion is pegged at INR 1,350,00,00,000 (one thousand three hundred and fifty crore rupees), payable to the University over a period of 9 years. The first tranche of this investment, amounting to INR 150,00,00,000 (one hundred and fifty crore rupees), will be disbursed upon the execution of definitive documents. The financing for this transaction will be structured through a combination of equity infusions, internal accruals, inter-corporate deposits, and debt financing availed by GHS Sonipat II. The consummation of the transaction is contingent upon due diligence, execution of definitive agreements, and fulfillment of all necessary conditions and approvals.
Source: BSE
