Gaja Alternative Asset Management Ltd IPO

The company claims that it has a track record across multiple investment cycles. It has over two decades of experience in alternative asset management and states that it has navigated events including the 2008 global financial crisis, demonetisation in 2016, the 2018 liquidity crisis in the non-banking financial sector and the COVID-19 pandemic.

The company’s funds have delivered multiple realised investments with reported returns. As of March 31, 2026, its Prior Investments had been fully realised with a Multiple on Invested Capital (MOIC) of 5.61x, while Fund II had an MOIC of 3.81x after realising investments from five of its eight portfolio companies. Fund III and Fund IV reported MOICs of 1.88x and 1.74x, respectively, as of the same date.

The company has a significant sponsor commitment in the funds it manages and advises. As of March 31, 2026, it had committed approximately Rs 274 crore as Sponsor Commitment to the Gaja Capital Funds, representing 6.41% of their total fund size. This included Rs 54 crore, Rs 70 crore, and Rs 150 crore committed to Funds II, III, and IV, respectively.

The company follows an invest-and-collaborate approach with its portfolio companies. It claims to provide support beyond capital infusion through board-level participation and operational engagement in areas such as business strategy, governance, fundraising, human resources, product, sales, and financial management.

The company has a diversified global investor base. Its limited partners are spread across more than 20 countries, with 63.42% of the total capital commitments in the Gaja Capital Funds raised from outside India and 36.58% from investors in India. Fund IV had received commitments from 72 domestic limited partners.

The company has an experienced and relatively stable management team. As of March 31, 2026, its core team comprised 15 professionals, while its senior leadership had been with the company for an average of 17 years. Its three promoters and executive directors have between 19 and 27 years of experience in the alternative asset management and related sectors.

The company has reported growth in profitability and maintained low leverage. Its profit after tax increased at a CAGR of 35.34% between FY2024 and FY2026, while its PAT margin increased from 43.04% in FY2024 to 51.94% in FY2026. As of March 31, 2026, its borrowings stood at Rs 41.56 crore against cash and cash equivalents of Rs 71.07 crore and liquid mutual funds of Rs 24.15 crore.

The company’s total income is dependent on the performance of the funds managed and advised by it. Management Fee contributed Rs 60.08 crore (38.07%), Rs 57.52 crore (46.65%) and Rs 75.85 crore (72.96%), Carried Interest contributed Rs 75.41 crore (47.79%), Rs 64.43 crore (52.25%) and Rs 18.39 crore (17.69%), while income from sponsor commitment contributed Rs 16.74 crore (10.61%), nil and Rs 6.93 crore (6.67%) in FY26, FY25, and FY24, respectively. Poor performance or failure to generate investment gains from the funds managed and advised by the company could reduce its income and adversely affect its performance, cash flows, and financial condition.

The historical returns generated by the funds managed and advised by the company may not be indicative of their future performance. As of March 31, 2026, the company’s prior investments had an MOIC of 5.61x, while Fund II, Fund III, and Fund IV had MOICs of 3.81x, 1.88x, and 1.74x, respectively. Since AIFs typically have a minimum tenure of five years, the realisation of investments and returns may take several years, and future returns may be significantly lower than historical returns.

The timing and receipt of carried interest from the funds managed and advised by the company are unpredictable and may cause volatility in its cash flows. Carried interest contributed Rs 75.41 crore (47.79%) and Rs 64.43 crore (52.25%) to total income in FY26 and FY25, respectively, compared with Rs 18.39 crore (17.69%) in FY24. Any delay in realising investment gains or failure of a fund to achieve its preferred rate of return could result in no Carried Interest being received and adversely affect the company’s income, cash flows, and financial performance.

The company and the funds managed and advised by it are subject to regulations issued by SEBI, RBI, MCA, and other regulatory authorities, and the company has previously faced instances of regulatory non-compliance. Any future regulatory violations or changes in applicable regulations could result in penalties, restrictions, suspension, or other adverse consequences for the company and the funds managed and advised by it.

The portfolio companies of the Gaja Capital Funds are geographically concentrated in India, particularly in Western and Southern India. As of March 31, 2026, 8 of the 18 portfolio companies (44.44%) were headquartered in Western India and 6 (33.33%) in Southern India, while 94.44% of the portfolio companies were based in India. Any slowdown or adverse economic, social, political, or other regional developments in these areas could adversely affect the funds managed and advised by the company and, consequently, its business, cash flows, and financial condition.

The company is dependent on a limited number of Limited Partners for the capital commitments of Fund IV. As of March 31, 2026, its top 10 Limited Partners contributed Rs 1,092.87 crore, representing 63.42% of the total commitments of Fund IV, including Rs 649.83 crore (36.61%) from domestic Limited Partners and Rs 443.03 crore (26.81%) from overseas Limited Partners. Any failure by these Limited Partners to honour their capital calls or any significant change in their investment behaviour or financial position could adversely affect the performance and financial stability of the funds managed and advised by the company.

The company’s reliance on third-party distributors for raising capital exposes it to risks associated with distributor relationships. In FY24, the company raised Rs 84.49 crore (17.96%) of the total Rs 470.57 crore raised for Fund IV through third-party distributors. Any mismanagement of these relationships, distributor misconduct, regulatory non-compliance, or loss of key distributors could adversely affect the company’s ability to raise capital, reputation, revenue and financial performance.

The company, its subsidiaries, directors, promoters and key managerial personnel are involved in certain outstanding legal proceedings pending before various courts and enquiry officers. Any adverse outcome in these proceedings could adversely affect the company’s reputation, business, results of operations, cash flows, and financial condition.

The company operates in a highly competitive alternative asset management industry, competing with alternative investment funds, private equity and venture capital funds, hedge funds, traditional asset managers, and other financial institutions. Any inability to match competitors on investment prices, structures, terms or management fees could result in the loss of investment opportunities and make it difficult for the company to raise future funds, which could adversely affect its revenue, results of operations, and cash flows.

The company has experienced negative cash flows from operating and investing activities in recent years. In FY26, it recorded a negative cash flow of Rs 14.98 crore from operating activities, primarily due to an increase of Rs 65.17 crore in other financial assets and other bank balances, and a negative cash flow of Rs 108.73 crore from investing activities, primarily due to the acquisition of investments amounting to Rs 105.30 crore. In FY25, negative operating cash flow of Rs 8.75 crore was primarily attributable to a Rs 68.67 crore increase in trade receivables, while negative financing cash flow from financing activities of Rs 6.76 crore was primarily due to dividends paid of Rs 5.21 crore. In FY24, negative investing cash flow of Rs 6.19 crore was primarily attributable to the acquisition of investments of Rs 5.24 crore and property, plant and equipment including intangible assets of Rs 1.62 crore, while negative financing cash flow of Rs 5.59 crore was primarily due to dividend payment of Rs 5.10 crore. Sustained negative cash flows could adversely affect the company’s ability to operate its business and implement its growth plans, thereby affecting its financial condition and future performance.

As of June 30, 2026, the company had outstanding financial indebtedness of Rs 60.70 crore. Any failure to service or repay these borrowings could adversely affect the company’s business, financial condition and cash flows.