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Anand Rathi Report
Gaja Alternative Asset Management IPO: 10 Key Things To Know Before You Subscribe
1. IPO Dates:
The public issue opens for subscription on August 19, 2026, and closes on Aug. 21.
2. Price Band:
Gaja Alternative Asset Management has fixed the IPO price band at Rs 152-160 per share, with a face value of Rs 5 per equity share.
3. IPO Size:
The IPO is worth Rs 550 crore at the upper end of the price band. It comprises of fresh issue of about 281 lakh shares worth Rs 450 crore while the offer-for-sale (OFS) consists of 63 lakh shares worth Rs 100 crore.
4. Lot Size and minimum investment:
The minimum bid lot is 93 shares. At the upper price band of Rs 160, one lot would require an investment of Rs 14,880. At the lower end of Rs 152, the investment for one lot works out to Rs 14,136.
5. Object Of The Issue:
Of the fresh issue proceeds, the company intends to deploy funds towards sponsor commitments in existing and new funds. This includes its balance sponsor commitment to constituent funds of Fund IV, repayment of the bridge loan amount, sponsor commitment to the proposed Fund V, and investment in the Secondaries Fund. A portion will also be used for general corporate purposes.
The Rs 100-crore OFS component will go to the selling shareholders and will not accrue to the company.
6. Investor Reservation
Of the total offer, 50% has been reserved for Qualified Institutional Buyers (QIBs), while 15% has been set aside for Non-Institutional Investors (NIIs). Retail investors will have 35% of the offer reserved for them.
7. Book Running Lead Managers:
JM Financial Ltd. and IIFL Capital Services Limited are the book running lead managers to the IPO, while MUFG Intime India Private Ltd. is the registrar to the offer
8. Peer Comparison:
360 ONE WAM, Aditya Birla Sun Life AMC, Anand Rathi Wealth, HDFC AMC, ICICI Prudential AMC, Nippon Life India AMC, Nuvama Wealth, SBI Funds Management and UTI AMC are the other listed entities in the segment.
9.Financial Performance:
Revenue from operations increased to Rs 135.5 crore in FY26 from Rs 122 crore in FY25 and Rs 95.6 crore in FY24. Ebitda rose to Rs 72.1 crore from Rs 60.8 crore and Rs 49.3 crore, respectively.
Consolidated PAT increased to Rs 82 crore in FY26, compared with Rs 62 crore in FY25 and Rs 44.7 crore in FY24. The report shows an FY26 Ebitda margin of 53% and PAT margin of 60%.
10.Key Risks:
Gaja's earnings depend significantly on the performance of the funds it manages and advises. Carried interest is particularly important but can be unpredictable, creating potential volatility in cash flows; carried interest represented 47.79% of total income in FY26 and 52.25% in FY25.
Other risks include the possibility that historical fund returns may not be repeated, subjectivity in valuing certain fund assets, inability to raise sufficient capital from limited partners, difficulty meeting capital calls, regulatory non-compliance and risks from overseas operations in jurisdictions including Cayman Islands and Mauritius. The company also faces liquidity risk in its investments and risks arising from related-party transactions.
Valuation:
At the upper price band of Rs 160, Gaja Alternative Asset Management is valued at around 27.5 times FY26 earnings and 2.1 times FY26 book value, implying a post-issue market capitalisation of approximately Rs 2,256.2 crore. Anand Rathi said the company offers pure-play exposure to India's growing alternative asset-management market, but its concentrated earnings profile and dependence on private-equity performance warrant a relatively conservative near-to-medium-term valuation view.
The brokerage nevertheless recommends Subscribe – Long Term.
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