By Mahesh Nayak
The stock price of Parag Parikh Financial Advisory Services (PPFAS) in the unlisted market has surged more than 40% in little over a month, valuing the firm at over Rs 10,600 crore. As a result, around 20% of its employees have entered the crorepati club through sale of their employee stock options (ESOPs) after the lock-in period.
Employees hold around 15% stake in the company. Its staff strength stood at 250.
“Whoever was with us between 2018 and 2021 received employee stock ownership (ESOP) options,” Neil Parikh, CEO at PPFAS Mutual Fund, said. While all employees have not completed the lock-in period and their rise in wealth is notional, some of them who can exercise the option have done so.
The stake of 50-60 employees (20%) is valued around Rs 955 crore, making them crorepati with their average holding in PPFAS at Rs 16 crore each.
Parikh believes the rise in the stock price is primarily due to their flagship Parag Parikh Flexi Cap Fund crossing the assets under management (AUM) mark of Rs 1 lakh crore. On May 7, 2025, it became the first actively managed fund to reach this milestone.
The share price of PPFAS is currently quoting at Rs 11,800 apiece in the unlisted market, up from Rs 8,200 on April 30, 2025, pushing the valuation of the firm to Rs 10,620 crore ($1.23 billion).
While the Parag Parikh family, including Geeta Parikh, Neil Parikh, and Sahil Parikh, holds 81.64% stake in the financial services company, Rajeev Thakkar, chief investment officer and a member of the board, holds close to 6%, valuing his holding in PPFAS anywhere between Rs 630 crore and Rs 650 crore.
The rest 1-2% stake are held by Parag Parikh’s friends. “We don’t plan to list for the next five years,” said Parikh, who has opened a private share market in his office for employees who want to sell their shares. “By providing a platform or facilitating connections with buyers, we are ensuring the employee gets a fair price for their shares. The buyers are completely outside the purview of the company,” he said.
As of March 31, 2024, PPFAS has reported a net profit of Rs 146 crore, with Rs 298 crore in reserves and surplus. Valuation may not justify the price, but brokers feel there is a frenzy across the unlisted market. A broker said, “The surge has been after the news of NSE getting approval for listing. Almost the entire bunch of unlisted stocks has surged, with some stocks seeing returns as high as 100% in one month.”
Early this year, PPFAS launched its Alternative Asset Managers IFSC office in Gift City, marking a foray into alternative investment options. The fund plans to launch an inbound fund, followed by other services, providing investors with access to global opportunities. PPFAS has also ventured into wealth management, offering personalised financial guidance to clients. Additionally, the company plans to reactivate its Portfolio Management Services (PMS) to cater to clients seeking active management for their investments, and in the mutual fund business, it aims to strengthen its fixed-income offerings, ensuring a more comprehensive suite of solutions for investors.