1 week ago
Gaja Capital debuts at 16% premium after Rs 550-crore IPO
Gaja Capital is a company that invests in businesses and manages investment funds.
It sold shares to the public through an IPO.
The company set the share price at Rs 160.
When trading began, the shares rose to Rs 185.20 on the BSE.
This meant the shares started about 16% higher than the IPO price.
The company raised Rs 550 crore from the share sale.
Experts said the company could grow as India’s alternative investment market expands.
They also warned that its results depend on a smaller group of investments and successful exits.
Gaja Capital shares listed at Rs 185.20 on the BSE, a 15.75% premium to the Rs 160 issue price.
The company raised Rs 550 crore through fresh shares worth Rs 450 crore and an offer for sale worth Rs 100 crore.
The IPO was open for bidding from August 19 to August 21, with allotments finalized on August 24.
Retail investors had to purchase at least one lot of 93 shares, requiring a minimum investment of Rs 14,880.
Anand Rathi Research recommended subscribing for the long term while flagging concentrated earnings and exit-related risks.
- Who
- Gaja Alternative Asset Management, also referred to as Gaja Capital, and investors participating in its IPO.
- What
- The company’s shares debuted on the BSE at Rs 185.20, a 15.75% premium to the Rs 160 issue price, after a Rs 550-crore IPO.
- Where
- The shares were listed on the BSE; the company invests in India-focused alternative assets.
- When
- The IPO bidding ran from August 19 to August 21, allotments were finalized on August 24, and the shares then listed on the exchanges.
- Why
- The IPO raised funds through a fresh issue and an offer for sale, while giving investors exposure to India’s alternative asset management market.
Growth opportunity
Investment risks
Market exposure
Growth opportunity
The company provides pure-play exposure to India’s high-growth alternative asset management market, with long-term growth prospects described as encouraging.
Investment risks
Its earnings profile is relatively concentrated and depends on the performance and exits of Indian mid-market private equity investments.
Valuation view
Growth opportunity
Anand Rathi Research recommended a “Subscribe – Long Term” rating at the upper price band, citing the company’s investment track record and growth potential.
Investment risks
The brokerage urged a conservative valuation outlook in the near to medium term because of the company’s dependence on investment performance and exits.
Key facts
- Issue price
- Rs 160 per equity share
- BSE listing price
- Rs 185.20 per share
- Listing premium
- 15.75%
- Total IPO size
- Rs 550 crore
- Fresh issue
- 2.81 crore shares worth Rs 450 crore
- Offer for sale
- 62.50 lakh shares worth Rs 100 crore
- Retail lot size
- 93 shares; minimum investment of Rs 14,880
- IPO intermediaries
- JM Financial was the book-running lead manager and MUFG Intime India was the registrar
Quotes
Anand Rathi Research
Brokerage research firm providing an assessment of Gaja Capital’s IPO
“At the upper price band, the company is valued at 27.5x FY26 P/E and 2.1x FY26 P/B, implying a post-issue market capitalisation of Rs 2,256.2 crore. Accordingly, we recommend a ‘Subscribe – Long Term’ rating for the issue.”
financialexpress.com
Sources
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