
Gaja Capital set to become first Indian PE firm to go public with plan for ₹500 cr IPO

Summary
By raising ₹500-600 crore, this firm aims to strengthen its market position and adapt to evolving global trends.Gaja Capital plans to raise ₹500-600 crore through an initial public offering, making it the first standalone Indian private equity firm to take to the public markets.
The firm has appointed merchant bankers JM Financial and IIFL Securities for the planned IPO, two people familiar with the matter toldMint, asking to remain anonymous.
The company is expected to file a draft red herring prospectus in the next few months, with the IPO planned by June 2025, one person said. The IPO is likely to be an issue of fresh shares.
A spokesperson for Gaja declined to comment on the matter. Emails sent to IIFL and JM Financial remained unanswered at the time of publication.
Earlier in January, the investment firm converted itself into a public limited company from a private limited one, according to documents filed with the Registrar of Companies. This is a precursor to going public as a private limited entity can have only 200 investors. On 1 January, the company registered its name as Gaja Alternative Asset Management Ltd, changing it from Gaja Alternative Asset Management Pvt Ltd.
While the PE firm will continue to raise third-party capital for its subsequent equity funds, an IPO will help Gaja Capital build scale, deepen global distribution networks and take advantage of the changing nature of the global limited partner base, one person said. It will also help the firm diversify its business, grow its brand and hire better talent, the second person added.
Most private equity firms are set up as limited liability partnerships, allowing the partners to take annual profits home in a much more tax-efficient manner. Should the firm wish to become public, it would need to change its corporate structure.
However, Gaja was set up as an AMC with a view towards an eventual listing, the people said. This allowed the firm’s asset management entity to accumulate fund profits and management fees over 20 years, increasing its net worth over time, the people said.
Public AMCs
Other asset management firms such as HDFC, Nippon, UTI, and Aditya Birla, which have alternative funds as a part of their portfolio, are already public. Last year, Edelweiss’ EAAA filed its draft papers to go public, asMint reported.
Firms with a private equity arm as part of the holding entity include Nuvama and 360One, which are already listed on the bourses.
Globally, large private equity firms Blackstone, KKR, Apollo Global Management, Carlyle Group and TPG have gone public and been able to diversify into other asset classes, besides private equity.
Founded by Gopal Jain, Imran Jafar and Ranjit Shah in 2004, Gaja Capital provides growth capital to companies spanning sectors including the education, consumer, and financial services sectors. It has managed about $500 million across four funds and 23 investments.
Gaja's portfolio companies include Signzy, Leadsquared, Xpressbees, RBL Bank, Chumbak, Avendus and Bakers Circle. Some of its prominent exits include EuroKids, Carnation, John Distilleries, Haldia Coke and Chemicals and TeamLease.