Gaja Capital shares list at 16% premium over IPO price; beat estimates

Gaja Alternative Asset Management, which operates under the Gaja Capital brand, made a positive debut on the stock exchanges on Wednesday after its ₹550-crore initial public offering (IPO) was subscribed 31.33 times.

Shares of the asset management company listed at ₹185 on the NSE, marking a 15.63% premium over the IPO price of ₹160 apiece. On the BSE, Gaja Capital shares debuted at ₹185.20, up 15.75% over the IPO price, valuing the company at ₹2,611.51 crore.

Meanwhile, the equity benchmarks - Sensex and Nifty - were trading 0.4% higher each, tracking firm cues from global markets.

Listing beats estimates

The listing was better than Street expectations, as Gaja Capital shares were commanding a grey market premium (GMP) of 11.56% ahead of the debut. The latest GMP stood at ₹18.50, implying a listing price of around ₹178.50 per share.

The IPO comprised a fresh issue of 2.81 crore shares worth ₹450 crore and an offer for sale (OFS) of 62.5 lakh shares worth ₹100 crore. It received bids for 79.35 crore shares against 2.53 crore shares on offer, translating into bids worth around ₹12,696.55 crore. The issue attracted 14.36 lakh applications.

The non-institutional investor (NII) portion was subscribed 62.35 times, while the qualified institutional buyer (QIB) segment was subscribed 43.58 times. The retail portion was subscribed 11.04 times.

Ahead of the IPO, Gaja Alternative Asset Management raised ₹165 crore from anchor investors at ₹160 a share. Mutual funds accounted for 65.15% of the anchor allocation, followed by life insurance companies at 16.66%. Together, long-term domestic institutional investors accounted for around 82% of the anchor book.

Nippon India Mutual Fund and Invesco Mutual Fund invested ₹30 crore each, while HDFC Life and SBI Life were also among the anchor investors. Investors including Akash Bhansali, Mukul Agarwal and Ashish Kacholia also participated in the anchor book.

Of the fresh issue proceeds, ₹387 crore will be used towards sponsor commitments to certain existing and proposed funds and repayment of a bridge loan. The commitments include Gaja Capital India Fund 2020 LLP, Gaja Capital India Fund 2020, the proposed Fund V and the Secondaries Fund.

Another ₹24.91 crore will be used for partial or full repayment of outstanding borrowings, with the balance earmarked for general corporate purposes.

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