LIVE
NIFTY 5022,453.30+0.98%SENSEX74,235.62+1.24%BANK NIFTY48,892.15+1.45%NIFTY IT35,124.80-0.52%NIFTY MIDCAP52,487.25+0.87%NIFTY 5022,453.30+0.98%SENSEX74,235.62+1.24%BANK NIFTY48,892.15+1.45%NIFTY IT35,124.80-0.52%NIFTY MIDCAP52,487.25+0.87%

Gaja Capital IPO: ₹550 Cr Target, Strong GMP

By IPO Desk

Gaja Capital’s IPO launched Aug 19, aiming to raise ₹550 crore. Shares show an 18.75% grey market premium. Details on price band, anchor investors, and more.

Gaja Alternative Asset Management, known as Gaja Capital, launched its Initial Public Offering (IPO) on August 19, targeting a raise of ₹550 crore. This alternative asset manager focuses on growth-oriented Indian businesses, boasting over two decades of experience in sectors like financial services and healthcare.

IPO Structure and Pricing

The ₹550 crore IPO is divided into two main components. Proceeds from the fresh sale are earmarked for sponsor commitments, bridge loan repayment, and general corporate purposes.

  • ₹450 crore from a fresh share sale.
  • ₹100 crore from an offer for sale.

The IPO price band is set between ₹152 and ₹160 per share. Investors can apply in lots of 93 shares.

Anchor Investor Commitments

Prior to its public launch, Gaja Capital secured significant backing from anchor investors. These commitments totaled ₹165 crore.

  • Nippon India Mutual Fund invested ₹30 crore.
  • Invesco Mutual Fund invested ₹30 crore.
  • HDFC Life and SBI Life also participated.
  • Seasoned investors Akash Bhansali, Mukul Agarwal, and Ashish Kacholia contributed.

Market Sentiment and Valuations

The grey market premium (GMP) for Gaja Capital shares currently stands at ₹190. This indicates an 18.75% upside over the upper end of the price band.

Brokerages generally recommend subscribing for a long-term investment. SBI Securities highlighted Gaja’s higher management fees of 190 bps in FY26, noting superior unit economics.

Swastika suggested Gaja is well-positioned to benefit from the 25-30% annual growth in private market allocations among Indian HNIs. Deven Choksey Research assigned a ‘Subscribe’ call, valuing Gaja at 27.5x FY26 PAT on a market-cap basis.

Key Figures

  • IPO size: ₹550 crore
  • Fresh share sale: ₹450 crore
  • Offer for sale: ₹100 crore
  • IPO price band: ₹152-₹160 per share
  • Anchor investor contribution: ₹165 crore
  • Grey market premium (GMP): ₹190
  • GMP upside: 18.75%
  • Gaja Capital Fund II, III, and IV income-generating capital (March 2026): ₹3,162 crore
  • Management fees (FY26): 190 bps
  • FY26 P/E multiple (SBI Securities): 22.0x
  • FY26 P/B multiple (SBI Securities): 3.0x
  • FY26 PAT valuation (Deven Choksey Research): 27.5x
  • Private market allocation growth: 25-30% annually

The company’s valuation at 27.5x FY26 PAT is considered a 25-30% discount to larger AMCs like HDFC AMC and Nippon Life AMC. This positioning makes it an attractive long-term play for exposure to India’s private equity narrative.

Home/business/Article