IPO-bound Gaja names ex-Sebi chief Sinha as non-executive chair, rejigs board
Private equity firm restructures board, raises ₹125 crore pre-IPO at ₹1,625 crore valuation; to become India’s first listed standalone PE player.
Gaja Capital Alternatives AMC, a homegrown private equity firm, has appointed former Securities and Exchange Board of India chief U.K. Sinha as non-executive chairman and rejigged its board of directors, as the company prepares to launch an initial public offering (IPO).
The firm, which is looking to raise ₹500 crore from an initial public offering, will become the first standalone private equity firm in India to list on the exchanges.
The company has appointed Shailesh Haribhakti, a chartered accountant and seasoned board member on many companies Prithvi Haldea, founder and chairman of Prime Database, Manish Sabharwal, vice-chairman of TeamLease Services, Arindam Bhattacharya, senior advisor and emeritus partner of Boston Consulting Group, and Shital Mehra, director and shareholder in Human Capital for Third Sector, India, as independent directors.
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The company is expected to file its documents with the markets regulator later this quarter for its IPO.
As per a January 2025 report by Mint, Gaja Capital Alternatives AMC has appointed investment banks IIFL Securities and JM Financial to help it with the IPO. The company recently raised ₹125 crore in a pre-IPO placement led by HDFC Life, SBI Life, stock investor Jagdish Master, and Akash Bhanshali (Enam). Gaja Capital’s pre-IPO placement values the company at ₹1,625 crore.
AMC boom
This development comes amid rising interest in India’s asset management companies (AMCs). Recently, ICICI Prudential AMC announced plans to go public. Market experts expect the firm to be valued at ₹1 trillion. Mutual fund AMCs and wealth management firms such as HDFC AMC, Nippon Life AMC, UTI AMC, Aditya Birla Sun Life AMC, 360 One (formerly IIFL Wealth), Anand Rathi Wealth, and Nuvama have already gone public, and many of them have delivered strong returns since their respective listings. Nuvama Wealth Management's stock, for example, has surged 200% since its listing in September 2023.
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 investment 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, Mint had reported.
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, Mint reported earlier.
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.
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Founded by Gopal Jain, Imran Jafar and Ranjit Shah in 2004, Gaja Capital provides growth capital to companies spanning sectors such as education, consumer and financial services. 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.
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