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Gaja Alternative shares slide after debut premium fades
The IPO was subscribed 31.3 times, and the firm plans to use proceeds for debt repayment, seeding new investment funds, and general corporate purposes.
Gaja Alternative Asset Management shares fell sharply after a strong market debut that priced the stock at a premium of about 16% versus the IPO level. The company listed at ₹185.20 on the BSE, up 15.75% from the issue price of ₹160, and at ₹185 on the NSE, up 15.62%.
According to LiveMint Markets, the post-listing rally failed to hold as the stock declined by more than 8% from its listing price, though it still traded more than 5% above the IPO price. Shivani Nyati of Swastika Investmart Ltd said the company could benefit from increased allocations to private markets by HNIs and family offices, given its capital-light and scalable model.
LiveMint Markets also reported that the IPO saw heavy demand, with the ₹550-crore public offering subscribed 31.33 times by the final day of bidding. The IPO price range was ₹152 to ₹160 per equity share, with up to ₹450 crore in a fresh issue and up to ₹100 crore via an offer-for-sale (OFS).
The company said it intends to use fresh-issue proceeds for debt repayment, seeding new investment funds, and general corporate purposes. Nyati cautioned that earnings in alternative asset management can be volatile due to reliance on performance-based fees and that profit booking after a strong debut cannot be ruled out.