2 weeks ago
Gaja Alternative Asset Management IPO Subscription Surges on Day Two
Gaja Alternative Asset Management is selling shares to the public for the first time.
On the second day, investors applied for more than twice the number of shares available.
Retail investors and non-institutional investors showed particularly strong demand.
The company plans to raise up to ₹550 crore.
Each share costs between ₹152 and ₹160, and one lot contains 93 shares.
Some of the new money will support existing and new funds, repay a bridge loan, and cover general business needs.
The company had raised ₹165 crore from large investors before the public issue began.
Two brokerages supported the IPO for long-term investors.
They also warned that the company’s earnings depend heavily on the performance and exits of some investments.
Gaja Alternative Asset Management’s ₹550-crore IPO was subscribed 2.43 times on August 20, with bids for 6,16,66,998 shares against 2,53,28,946 shares offered.
Non-institutional investors subscribed 3.93 times, retail investors 3.13 times, and qualified institutional buyers 10% of their reserved portion.
The IPO opened on August 19 and closes on August 21, with a price band of ₹152–160 per share and a lot size of 93 shares.
The offering includes a ₹450-crore fresh issue and an offer for sale of up to ₹100 crore by promoters and other shareholders.
Anand Rathi and SBI Securities recommended subscribing for the long term, while warning about valuation, earnings concentration, and investment-performance risks.
- Who
- Gaja Alternative Asset Management Ltd, which operates under the Gaja Capital brand, and investors subscribing to its IPO.
- What
- The company’s ₹550-crore initial public offering received 2.43 times subscription on its second bidding day.
- Where
- The shares are proposed to be listed on the BSE and NSE.
- When
- Bidding opened on August 19, reached 2.43 times subscription on August 20, and is scheduled to close on August 21.
- Why
- The fresh-issue proceeds will fund sponsor commitments to certain funds, repay a bridge loan, seed new funds, and support general corporate purposes.
Long-Term Investment Case
Risks and Reservations
Industry growth
Long-Term Investment Case
Anand Rathi said the IPO offers pure-play exposure to India’s alternative asset-management market. SBI Securities cited increased adoption by institutional, HNI, and UHNI investors and a long runway for industry growth.
Risks and Reservations
Anand Rathi said the company’s relatively concentrated earnings profile and dependence on the performance and exits of Indian mid-market private-equity investments support a conservative near- to medium-term valuation outlook.
Business economics and valuation
Long-Term Investment Case
SBI Securities highlighted FY26 management fees of 190 basis points, compared with 37–52 basis points for mutual-fund players, and said the IPO was attractively priced for long-term investors.
Risks and Reservations
The brokerages cited different valuation measures: Anand Rathi referred to 27.5 times FY26 price-to-earnings and 2.1 times price-to-book, while SBI Securities cited 22.0 times FY26 price-to-earnings and 3.0 times price-to-book.
Grey-market expectations
Long-Term Investment Case
A reported grey-market premium of ₹23 implied an estimated listing price of ₹183, or a 14.37% premium over the ₹160 upper issue price.
Risks and Reservations
The grey-market premium reportedly ranged from ₹0 to ₹30 during the preceding week, and such indicators do not guarantee the eventual listing price.
Key facts
- IPO size
- Up to ₹550 crore
- Day-two subscription
- 2.43 times, based on 6,16,66,998 bids against 2,53,28,946 shares offered; one report rounded the figure to 2.44 times
- Price band
- ₹152–160 per equity share
- Offer structure
- Fresh issue of up to ₹450 crore and offer for sale of up to ₹100 crore
- Anchor investment
- ₹165 crore raised from anchor investors through the allotment of about 1.03 crore shares at ₹160 each
- Use of fresh proceeds
- ₹372 crore for sponsor commitments to certain existing and new funds and repayment of a bridge loan; the balance for general corporate purposes
- Expected listing
- BSE and NSE on August 26, subject to the stated IPO timeline
Quotes
SBI Securities Analyst
Analyst at brokerage firm SBI Securities.
“We believe the Indian Alternative Investment industry is at a nascent stage with a long runway for growth.”
livemint.com
“The company offers pure‑play exposure to India’s high‑growth alternative asset management market.”
livemint.com
Sources
Gaja Capital IPO fully subscribed on day 2; NIIs, retail investors drive demand
Gaja Alternative Asset Management IPO Gets 86% Subscription On First Day Of Bidding
Gaja Alternative Asset Management IPO Day 2 LIVE: Issue subscribed 86% so far. Here's GMP, review - apply or not?
Gaja Capital ₹550-Crore IPO Subscribed 2.43 Times On Day 2; Retail Portion Booked 3.13 Times
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