The company has crafted a unique alpha-oriented strategy focused on the mid-market segment, emphasizing an invest-and-collaborate model. Its investment approach targets key areas of Portfolio Companies - product development, sales enhancement, human resources optimization, and financial management.

The income is derived primarily from three income streams (i) Management Fee, (ii) Carried Interest and (iii) Income from Sponsor Commitment. Management Fee is received for providing management and advisory services to funds and its a function of the size of a fund. Carried Interest is the performance linked share of profits generated by the funds managed and advised and is a function of the respective funds net IRR. Income from Sponsor Commitment is the capital gains earned on capital commitment as a sponsor to the funds managed and advised and is a function of the gross Multiple on Invested Capital (MOIC) of a fund.

As a manager or sponsor of an AIF, the company is required to have a continuing interest in such AIF in the form of an investment, i.e., Sponsor Commitment. A high contribution as a sponsor reflects commitment and confidence in the long-term success of the funds, and further aligns its interests with the (Limited Partners) LPs through greater skin-in-the-game and reduced cost of fund-raising. The commitment is underscored by a significant Sponsor Commitment of approximately Rs 274 crore at end March 2026, equating to 6.41% of the total fund size, far exceeding the SEBI AIF Regulations‘ minimum thresholds.

The company is promoted by Gopal Jain, MD&CEO, Ranjit Jayant Shah, Executive Vice-Chairman, and Imran Jafar, Executive Director, who have established track records in alternative asset management and private equity in India. Senior leadership comprised three Executive Directors, Chief Financial Officer and Senior Management.

The investment management capabilities are reflected in the consistent performance of managed funds. The company began operations with four initial investments from 2005 to 2007 and subsequently launched Fund II in 2007, Fund III in 2015, and Fund IV in 2021. Each fund has surpassed the previous in size, demonstrating growth and ability to attract long-standing relationships with LPs across over 20 countries, including India, the US, Europe, and the Middle East. The company prioritizes enhancing fund performance to drive enterprise value, managing Gaja Capital Funds through fundraising, investment, portfolio management, and exits, achieving a 3.3x average MOIC across investments.

The company maintains a lean core team of 23 permanent employees at end March 2026.

The Offer and the Objects

The initial public offer (IPO) consists of fresh issue to raise Rs 450 through issuance of 2.96 crore equity shares at the lower band of Rs 152 per share (face value Rs 5 per share) and 2.81 crore equity shares at the upper band of Rs 160 per share.

The IPO also comprises of offer for sales (OFS) of Rs 100 crore through issue of 0.63-0.66 crore equity shares. Among the promoters and group, Ranjit Shah is selling Rs 29.35 crore worth of equity shares of the company, Imran Jafer Rs 20 crore and Sudesh Jain Rs 10 crore through OFS.

The promoter shareholding in the company will decline to 54.23% post- IPO from 71.03% pre-IPO.

The issue is to be made through the book-building process and will open on 19 August 2026 and will close on 21 August 2026.

The company proposes to utilize Rs 372 crore from the net proceeds of IPOs for investing towards its sponsor commitments to certain existing and new funds and for repayment of the Bridge Loan Amount. The remaining proceeds will be used for general corporate purposes.

Within the existing funds towards meeting balance sponsor commitment to Fund IV, the company intends to deploy Rs 2.155 crore in Gaja Capital India Fund 2020 LLP and Rs 35.345 crore in Gaja Capital India Fund 2021 to be deployed over FY2027 and FY2028 and Rs 19.5 crore for the bridge loan repayment.

On new funds, the company is in the process of setting up Fund V with the targeted fund size of Rs 2500 crore. It has filed a private placement memorandum application with the SEBI on 10 June 2026. The company intends to contribute Rs 210 crore as Sponsor Commitment to Fund V to be deployed over FY27, FY28 and FY29.

Further, the company intends to utilize Rs 105 crore as sponsor commitments to the Secondaries Fund with the targeted funds size of Rs 1250 crore.

Strengths

Gaja is well-established alternative AMC with a differentiated business model. Proven track record of delivering consistent performance across the Gaja Capital Funds culminated in 28 investments, including fully realized investments.

The invest-and-collaborate approach of the company emphasizes adding value to portfolio companies with active engagement through board representation in nearly all portfolio firms to pair investment management expertise with operational experience.

A high contribution as a sponsor reflects commitment and confidence in investment strategies and the long-term success of the funds and further aligns interests with the LPs.

Significant 63.42% of its total capital commitments sourced internationally from over 20 countries and 36.58% from domestic LPs in India.

The company has established extensive relationships with a diverse global investor base including fund of funds managers, alternative asset managers, high net worth individuals (HNI), ultra-HNIs, sovereign wealth funds, pension funds, insurance companies, and family offices across India, the United States, Europe, and the Middle East.

These long-standing relationships with LPs have facilitated the successful raising of multiple funds, with a noteworthy increase in their size over time.

AIF industry AUM growth has outpaced traditional asset classes and the segment is likely to maintain rapid growth due to rising demand from institutional investors, ultra-high-net-worth individuals, and high-net-worth individuals for differentiated investment products.

Significant room for scaling with alternative investment products among the fastest growing in India. Commitments from AIFs increased at approximately 29.2% CAGR to Rs 16.90 lakh crore by March 2026 from March 2019 and are projected to grow by 25-27% between March 2026 and March 2030, potentially reaching Rs 41-44 lakh crore.

The mid-market category, comprising deal sizes of Rs 50-250 crore, saw its market share increase to 19% by volume and 14% by value in FY2025, up from 16% and 12% in FY2020, respectively. Market share of mid-market category rose to 22% by volumes at end March 2026. The share of mid-market within PE investments is expected to rise further and at a faster rate.

Weaknesses

The income is heavily influenced by the performance of the funds managed and advised. Carried interest and income from sponsor commitment depend on the successful realization of investment gains.

The successful implementation of growth plans is contingent upon various uncontrollable factors, including competition, market conditions, and regulatory environments.

AIFs typically have long-term investment horizons, often exceeding five years and returns may take considerable time to materialize.

The timing of carried interest realization is unpredictable and adds volatility to cash flows. If a fund does not meet its preferred return, no Carried Interest is received and only the Management Fee is applicable.

Third-party valuers registered with the Insolvency and Bankruptcy Board of India (IBBI) assess asset values using multiple methodologies. Valuation methodologies for assets in the funds managed can be highly subjective, leading to potential mis-valuation and substantial losses for the funds. Income and profits are intrinsically linked to the asset values in the funds.

Many assets in funds operate in cyclical industries or environments susceptible to swings due to internal or industry factors, leading to rapid value fluctuations.

Dependency on LPs for capital raises poses risks. Out of the 298 LPs associated, 139 were located in India and 159 were located outside India. Offshore LPs pose geopolitical, sovereign rating, and capital re-allocation risks.

Top 10 LPs accounted for 63.42% of total commitments in Fund IV, exposing to concentration risks that can affect fund performance and stability.

Successful fund operations depend on LPs honoring capital calls as stipulated in agreements. Substantial delays or shortages in capital contributions may require company to explore alternative financing options that could be less favorable or miss valuable investment opportunities.

The funds make investments in equity and convertible securities of private companies, which are unlisted, and such securities are generally illiquid and comparatively less active when compared to the listed counter parts, exposing Sponsor Commitment to the risk of illiquidity.

The funds typically make minority investments in equity and convertible securities of portfolio companies and do not acquire control of such companies. Out of 29 portfolio companies, 26 are minority holdings (only 3 are majority-owned), limiting control over operational decisions, governance, and exit timing.

Fund IV governing documents contain claw-back provisions requiring the return of distributed carried interest to LPs if returns fall below the hurdle rate due to tax assessments or indemnity payments. No claw-backs were triggered in FY2024-26.

Over 94% of portfolio companies are based in India, with head offices heavily concentrated in Western and Southern India.

Aims to establish new funds, including Gaja Capital India Fund V and Eastgate Secondaries Fund, but registration delays or failures could adversely affect business.

Investments are tightly concentrated across four core domains - EEE, Financial Services, Consumer and Digital Technology, exposing to performance fluctuations in these areas.

Valuation

Gaja Alternative Asset Management has delivered healthy financial performance with strong revenue growth and profitability. The net profit grew at a CAGR of 25% from Rs 41.12 crore in FY2023 to Rs 79.66 crore in FY2026, with 34% CAGR growth in revenue from operations and improved net profit margins. PAT Margins have improved from 36.2% in FY23 to 50.5% in FY26.

The EPS on post-issue equity for FY2026 works out to Rs 5.6. At the price band of Rs 152 to Rs 160, P/E works out to 26.9-28.3 times of EPS for FY2026. Post IPO M-cap is Rs 2256 crore at upper price band.

The company had raised Rs 125 crore in June 2025 from institutional investors such as SBI Life, HDFC Life, Enam etc at a post-allotment valuation of Rs 1625 crore. The issue price was set at Rs 143.95, implying PE of 27.3 times.

The company has announced a final dividend of Rs 0.75 per equity share for FY2026 subject to the approval of the shareholders at the Annual General Meeting.

Gaja Alternative Asset Management is a pure-play Private Equity & Alternative Investment Fund (AIF) manager and first AMC in the fast-growing alternative asset management space to list on exchanges.

Among peer AMCs in the traditional mutual funds space, Nippon Life India Asset Management is trading at PE of 49.6 times its EPS for FY2026, ICICI Prudential Asset Management Company at 45.4 times, HDFC Asset Management Company at 37.8 times, SBI Funds Management at 37.8 times, Aditya Birla Sun Life AMC at 30.3 times and UTI Asset Management Company at 28.8 times.

In the wealth management space, 360 One WAM is trading at 40.0 times EPS for FY2026, Anand Rathi Wealth at 91.5 times and Nuvama Wealth Management at 30.4 times.