Gaja Alternative Asset Management Ltd (May Subscribe)

Highlights

Gaja Alternative Asset Management Limited (GAAML), incorporated in 1999, is an independent alternative asset management company with over two decades of experience in managing and advising India-focused funds, including Category I and II AIFs, as well as offshore funds investing in India. The company focuses on alternative investments across education, energy & environment, financial services, consumer and digital technology, primarily within the mid-market segment.

GAAML has built a track record across multiple fund cycles through the Gaja Capital Funds, comprising Fund II, Fund III and Fund IV, supported by long-standing investor relationships across 20+ countries spanning, US, UK, Canada, Australia, Saudi Arabia and western Europe.

GAAML generates income through three key streams: (i) Management Fees, (ii) Carried Interest and (iii) income from Sponsor Commitments, thereby capturing economic value generated by the funds it manages and advises.

Out of the total proceeds of Rs. 5,500 mn, Rs. 3,720 mn would go towards investing in sponsor commitments to certain existing and new funds and for repayment of the Bridge Loan Amount and remaining Rs. 780 mn go towards funding general corporate purposes. Additionally, Rs. 1,000 mn is going towards promoter selling shareholders.

Key Highlights

• AIFs have emerged as a key constituent of India’s private markets, with AIF’s share as a percentage of GDP rising from 1.5 pct in FY19 to 4.9 pct in FY26. Total commitments reached Rs. 16.9 trillion in FY26, a 29.2 pct CAGR over FY19-26, and are projected to grow at 25-27 pct CAGR to reach Rs. 41-44 trillion by FY30.
• GAAML follows a differentiated, alpha-oriented strategy focused on high-growth mid-market sectors, investing primarily in private, unlisted companies and creating value through scale, transformation and active engagement. Its strategy combines sector expertise, proprietary sourcing, strategic value creation, partnership with VC firms and

entrepreneur, while maintaining diversification across ticket sizes, sectors and investment vintages and focusing on defined exit opportunities.

• GAAML demonstrates strong “skin-in-the-game” through substantial Sponsor Commitments, aligning its interests with LPs and reinforcing confidence in its investment strategies. As of FY26, Sponsor Commitments stood at Rs. 2,740 mn, representing 6.41 pct of total fund size.
• GAAML follows an invest-and-collaborate approach focused on value addition beyond capital infusion, supporting portfolio companies across three levels: Level I – board participation; Level II – business strategy, governance, fund-raising and strategic financial transactions; and Level III – business growth, human resources and finance/legal functions. They also supports fund-raising, IPOs and M&A transactions.
• GAAML has delivered strong investment performance across its funds, with Prior Investments generating a 5.61x MOIC and Fund II delivering a 3.81x MOIC; Fund III and Fund IV have generated 1.88x and 1.74x MOICs, respectively, with Fund IV delivering a 27.91 pct IRR and ranking in the 1st quartile on both IRR and TVPI.
• GAAML’s key growth strategies include (i) To drive enterprise value by leveraging its business model and key value drivers, (ii) capitalize on AIF segment growth and focus on high-growth mid-market segment, (iii) deliver sustained growth and investment performance in its flagship PE strategy, (iv) leverage its expertise to develop new growth strategies, (v) strengthen its employee value proposition to attract and retain talent, and (vi) enhance investor reach in India and globally and strengthen industry relationships.
• The sales of the company have grown by 19.05 pct CAGR over FY24-26 and EBITDA/profit has grown 20.93 pct CAGR/35.44 pct CAGR over the same period. In FY26, the company reported sales of Rs. 1,355 mn, rose 11.07 pct YoY. EBITDA of the company increased 18.59 pct YoY to Rs. 721 mn. In FY26, the company posted profit of Rs. 820 mn, up 32.26 pct YoY.

Key Risk

• GAAWL faces intense competition from alternative AMCs with greater capital, expertise, funding access, flexibility and stronger investment capabilities, which could limit its investment opportunities and fundraising.
• GAAML’s performance depends significantly on performance of funds managed by them, with any slowdown, inability to raise capital, meet investment objectives or generate expected returns potentially impacting business and financial performance.

Financial Performance

Source: – RHP.

Peer Comparison based on FY26 Financials.

Source: – RHP.

Valuation

Gaja Alternative Asset Management partners with entrepreneurs to build leading businesses in India’s mid-market. With their extensive experience, they have developed a differentiated alpha-oriented strategy focused on high-growth sectors such as digital technology, consumer, financial services and education. At the upper end of the price band of Rs. 160, the issue is priced at an PE of 27.5x its FY26 post issue capital. The issue appears to be fully priced. However, only high risk investors may subscribe this issue for listing gains.

Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.