Can Gaja Alternative Asset Management IPO deliver long-term growth for high-risk investors?
Gaja Alternative Asset Management plans a ₹450 crore IPO to fund investments and repay loans. The company's promoter stake will decrease to fifty-four percent after the offering. Its business model relies on fund performance and is subject to regulatory changes. Revenue and net profit have shown growth in recent fiscal years. The firm's valuation aligns with other listed asset management…
Gaja Alternative Asset Management, an India-focused investment firm, is set to launch an IPO to raise capital for its existing and future funds. The company plans to issue ₹450 crore through a fresh issue and an additional ₹100 crore via an offer for sale. This move will reduce the promoter's stake from 71% to 54%. Gaja has achieved an average multiple on invested capital (MOIC) of 3.3 times across its past investments, indicating robust returns.
However, its earnings hinge on fund performance and are susceptible to regulatory shifts. Established in 1999, the firm concentrates on the mid-market segment, investing in sectors like education, energy, financial services, and digital technology. Gaja Capital's Limited Partners, investors spread across 20 nations, earn income from management fees, carried interest (profits from successful investments), and sponsor commitments.
As of March 2026, the company has committed ₹274 crore, equivalent to 6.4% of the total Gaja Capital Funds. The carried interest accounted for 48% of total income in FY26. Weak investment performance could negatively impact carried interest and sponsor-related income. India's alternative investment assets are projected to grow at 25-27% by March 2030, reaching ₹41-44 lakh crore.
The IPO is priced at a P/E multiple of 27.5 times, surpassing the 25-40 times range for listed asset management companies.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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