Gaja Alternative Asset Management IPO

Strengths · 8

• 01Growth has been steady for three years. Total income went from Rs 103.96 crore in FY2024 to Rs 123.31 crore in FY2025 and Rs 157.80 crore in FY2026.
• 02Profit has also grown every year, from Rs 44.74 crore in FY2024 to Rs 61.95 crore in FY2025 and Rs 81.96 crore in FY2026.
• 03The business is highly profitable. Profit after tax of Rs 81.96 crore on total income of Rs 157.80 crore means more than half of the income comes down as profit.
• 04The balance sheet is strong. Net worth was Rs 606.52 crore against borrowing of only Rs 41.56 crore as on 31 March 2026.
• 05The company has put its own money in its funds. The sponsor commitment of about Rs 274 crore is 6.41% of the fund size, so its interest is aligned with the investors.
• 06It has a long record of over 25 years and has run multiple fund cycles through Fund II, Fund III and Fund IV.
• 07Investors come from more than 20 countries, so the money source is spread out and not dependent on one market.
• 08Out of the Rs 550 crore issue, Rs 450 crore is fresh money coming to the company.

Risks · 8

• 01This issue is priced high on earnings. At the upper band of Rs 160 the post issue P/E is about 27.54 times on an EPS of Rs 5.81.
• 02A part of the income is carried interest and gain on own investment. This income comes only when a fund sells an investment at a profit, so it is lumpy and does not come every year in the same amount.
• 03The team is very small, with only 37 people of which 14 are on contract. The business depends heavily on a few key fund managers.
• 04Borrowing rose sharply in one year, from Rs 4.00 crore to Rs 41.56 crore.
• 05This is a cyclical business. If markets fall, new fund raising becomes slow and exits get delayed, which directly reduces both fees and carried interest.
• 06The business is fully dependent on SEBI AIF rules. Any change in regulation on fees, structure or taxation will affect earnings.
• 07Rs 100 crore of the Rs 550 crore issue is an offer for sale and that money goes to the selling shareholders.
• 08The company manages a limited number of funds, so the performance of one weak fund can affect its reputation and its ability to raise the next fund.

Gaja Alternative Asset Management Limited was started in April 1999. It is an Indian owned alternative asset management company. In simple words, it collects money from large investors and invests that money in Indian companies through funds. It manages and advises Category I and Category II AIFs registered in India as well as offshore funds that invest in India.

The company invests mainly in mid sized companies in areas such as education, energy and environment, financial services, consumer products and digital technology. It runs the Gaja Capital Funds, which include Fund II, Fund III and Fund IV, and has investors from more than 20 countries.

The company earns in three ways, through management fees on the money it manages, through carried interest which is a share of the profit when a fund does well, and through gains on its own money invested in those funds. As on 31 March 2026 it had put in about Rs 274 crore of its own money as sponsor commitment, which is 6.41% of the total size of the Gaja Capital Funds. It follows an invest and collaborate approach and works with its portfolio companies on product, sales, hiring and finance. As on 31 March 2026 it had 37 people, including 23 permanent and 14 contract employees.

Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.