Mumbai-based Gaja Alternative Asset Management has opened its IPO worth Rs 550 crore today, i.e., August 19. So far, the book-built issue has been subscribed 0.32 times as of xx pm, and its premium in the grey market is reported at over 14%. 

The company has fixed its share price band at Rs 152 to Rs 160 and plans to raise the majority of its capital worth Rs 450 crore via the issuance of fresh equity shares of Rs 5 each. Ahead of its opening, AMC had raised Rs 165 crore from 20 anchor investors, including marquee investors like Nippon India Mutual Fund, Invesco Mutual Funds, HDFC Life Insurance, JM Financial Mutual Funds, etc. 

#1 Gaja Alternative Asset Management IPO: Offer size & BRLMs

The company aims to raise Rs 550 crore through its offer, of which the fresh issue will comprise 2.81 crore shares amounting to Rs 450 crore. The promoter group will divest 63 lakh shares aggregating to Rs 100 crore. 

The offer is being managed by JM Financial and IIFL Capital, while MUFG Intime India is acting as the registrar to the issue. 

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#2 Gaja Alternative Asset Management IPO: Utilisation of net proceeds

The company aims to deploy fresh proceeds worth Rs 450 crore to meet its investment commitments in certain existing and new funds, and also bridge the loan amount. According to its red herring prospectus, the AMC will utilize Rs 372 crore for investment in its sponsor commitments, and the balance will be used for general corporate purposes.

#3 Gaja Alternative Asset Management IPO: GMP at 18%

In the unlisted markets, the shares of Gaja Alternative are trading at a premium of 14%, suggesting an estimated listing price of Rs 183, based on the upper end of the price band. This equates to a profit of Rs 23 per share and Rs 2,139 per lot. 

However, it is important to know that GMP is not an official metric to estimate the listing price and fluctuates based on market mood and sentiment. 

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#4 Gaja Alternative Asset Management IPO: Brokerage commentary

“Gaja trades at 27.5x FY26 PAT on a market-cap basis versus 37.8x for HDFC AMC and ~32.8x for Nippon Life AMC. The 25-30% discount reflects the company’s smaller scale and greater carried-interest volatility. We view the valuation as fair-to-attractive for a high-margin, capital-light AMC with a 35% PAT CAGR. We recommend Subscribe,” Deven Choksey Research, said in a report. 

#5 Gaja Alternative Asset Management IPO: Subscription timeline

The IPO opened for public subscription on August 19 and will close its bidding window in August 21. Its share allotment price will be completed by August 24, and investors will likely be credited their shares and requisite refunds by August 25. The AMC is expected to debut on NSE and BSE on August 25.