IL&FS Investment Managers Ltd. Share Price

Gaja Alternative Asset Management

• Gaja Alternative Asset Management is coming out with a 100% book building; initial public offering (IPO) of 3,61,84,210 shares of face value Rs 5 each in a price band Rs 152 - 160 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 19, 2026 and will close on August 21, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 30.40 times of its face value on the lower side and 32.00 times on the higher side.
• Book running lead managers to the issue are JM Financial, and IIFL Capital Services.
• Compliance officer for the issue is Ishu Jain. 

Profile of the company

The company is a well-established alternative asset management company. It acts as an investment manager to India focused funds, including category II and category I alternative investment funds (AIFs) and also act as advisors to offshore funds, which provide capital to companies in India. It is an experienced, independent and home-grown alternative asset management company (AMC). With decades of experience in alternative asset management, it has navigated various investment cycles across the funds managed and advised by the company. As an independent alternative AMC, it is not sponsored or owned by any financial institution, corporate group, or global firm and its ownership structure is predominantly held by its leadership team. The home-grown character of the company is rooted in the backgrounds of its Promoters and senior management, all of whom have developed their careers in India and are Indian citizens.

The portfolio of investments across the funds managed and advised by us, has been focused on various sectors, including, EEE, financial services, consumer and digital technology. With its extensive experience in the mid-market segment, it has developed a differentiated alpha-oriented strategy for the funds managed and advised by the company, with a focus on an invest-and-collaborate approach to add value to the Portfolio Companies. Its investment strategy focuses on specific aspects of a Portfolio Company, including, (i) product, (ii) sales, (iii) human resources, and (iv) financial management.  

Proceed is being used for: 

• Investing towards its Sponsor Commitments to certain existing and new funds and for repayment of the Bridge Loan Amount, as follows: (a) investing towards its balance Sponsor Commitment to the following constituent funds of Fund IV and for repayment of the Bridge Loan Amount: (i) Gaja Capital India Fund 2020 LLP; (ii) Gaja Capital India Fund 2021 (formerly known as Gaja Capital India Fund 2020); and (iii) Bridge Loan Amount; (b) investing towards its Sponsor Commitment to the proposed Fund V; and (c) investing towards its Sponsor Commitment to the Secondaries Fund.
• General corporate purposes

Industry overview

The Insurance Regulatory and Development Authority of India (IRDAI), a statutory body, plays a crucial role in safeguarding the interests of policyholders and promoting the orderly growth of the insurance industry in India. As per the regulations set by the IRDAI, insurance companies are subject to specific investment limits when it comes to venture funds and Alternative Investment Funds (AIFs) under categories I and II. Overall exposure of life insurance companies is limited to 3% of the respective fund size and up to 5% for general insurance companies. In terms of exposure to a single AIF/venture fund, it is 10% of the AIF/venture fund size or 20% of overall exposure, whichever is lower, for both life and general insurers.

In India, SEBI regulations prohibit mutual funds (MFs) from investing in AIFs. MFs are restricted to listed securities for liquidity and transparency, while AIFs involve unlisted, high-risk assets. This ensures MFs maintain a distinct risk profile, protecting investors from AIFs’ illiquidity and complexity. The AUM of the Indian mutual fund industry has grown at a healthy pace over the past few years against the backdrop of an expanding domestic economy, robust inflows and rising investor participation, particularly from individuals. Domestic mutual fund investors have continued to demonstrate confidence in Indian equities.

Average AUMs increased at 19.5% CAGR to reach Rs 67.4 trillion as of March 2025 from Rs 13.5 trillion as of March 2016. The stellar performance of the stock market in fiscal 2025, along with rise in inflows, growth in participation of retail investors and improved macroeconomic conditions drove the growth. The presence of high-net-worth individuals (HNIs) and ultra-high net worth individuals (UHNIs) has seen a notable uptick, marking a shift in the investor demographics of the Indian mutual fund industry. HNIs and retail investors are increasingly becoming key players, with the share of HNIs in mutual fund investments rising from 31.6% in fiscal 2019 to 35.4% in the first half of the current fiscal year.

Pros and strengths 

Well-established alternative AMC with a differentiated business model focused on driving the enterprise value: With 20 years of experience in alternative asset management, it has demonstrated a consistent track record of its investment management and advisory capabilities. Its investment approach has developed with its experience across its Prior Investments and the Gaja Capital Funds and has helped it navigates externalities such as the 2008 global financial crisis, demonetization in 2016, the liquidity crisis in the non-banking financial sector in 2018 and the COVID-19 pandemic. Its differentiated business model focuses on increasing its operating leverage and efficiency by (i) maximizing transmission of economics from the funds managed and advised by it to the company and (ii) informed management of its expenses. All the income generated by the Gaja Capital Funds through Management Fees, Carried Interest and Income from Sponsor Commitment is received in its entirety by the company. It has traditionally relied on its network of investors to raise funds for the Gaja Capital Funds while keeping the proportion of funds raised through third-party distributors low.

Focus on the high-growth alternative asset management industry in India: Alternative investment products are among the fastest growing managed investment products in India and over the past few years alternative investment funds have become one of the key segments in private markets in India. Between Fiscals 2019 and 2026, alternative investment fund commitments have been growing at a steady pace, registering approximately 29.2% CAGR, with a total commitment of Rs 16.90 trillion as of March, 2026. The AIF segment is expected to remain one of the fastest growing managed products categories over the next few years as more institutional investors, ultra-high net worth individuals (“UHNIs”) and high net worth individuals (“HNIs”) seek out differentiated products that provide them an option to generate better returns on their investments (Source: Crisil Report). AIF activity in terms of commitments raised have been on the rise, clocking a CAGR of 29.2% between Fiscal 2019 and Fiscal 2026, and it is expected that India will remain an attractive destination for private equity and venture capital investments in the long term.

Long-standing and well-established industry relationships with diverse global investor base across Gaja Capital Funds: It has access to a diversified global investor base including fund of funds managers, alternative asset managers, HNI, UHNIs, sovereign wealth funds, pension funds, insurance companies and family offices across India, USA, Europe and the Middle East. Its long-standing relationships with Limited partner (LP) globally have helped it raises multiple funds with a consistent increase in the size of the Gaja Capital Funds. With its demonstrated investment performance and track-record of returns, it has enjoyed the advantage of a committed investor base. The LPs of the Gaja Capital Funds are spread across more than 20 countries, with 63.42% of the total capital commitments in the Gaja Capital Funds being raised from outside India and 36.58% of the capital commitments raised from LPs in India. Further, the LP participation from domestic investors has increased in the funds managed and advised by us, with Fund IV, having received commitments from 72 domestic LPs, which is greater than the domestic LP participation in Fund II and III. Its global investor network spans countries including Canada, the United States, United Kingdom, Netherlands, Ireland, France, Germany, Denmark, Switzerland, Australia and Saudi Arabia. It uses its global reach to access capital and source opportunities for the Gaja Capital Funds and the Portfolio Companies.

Risks and concerns

Dependence on fund performance and management fees/carried interest: Its total income is dependent on the performance of the funds managed and advised by the company. It derives its total income from Management Fee, Carried Interest and Income from Sponsor Commitment and its total income during Fiscals 2026, 2025, and 2024 included Management Fee from the funds managed and advised by it and was 38.07%, 46.65% and 72.96% of its total income, respectively. Additionally, there is a risk that the Management Fee and Carried Interest in the alternative asset management industry may decline, without regard to the historical performance of a manager. Any instance of its income from Management Fee or Carried Interest materially declining in the future, without corresponding decreases in its cost structure or assets under management, could adversely affect its revenue and profitability.

Geographic concentration of portfolio companies: Majority of the Portfolio Companies of the Gaja Capital Funds are located in India. Its business is therefore significantly affected by fluctuations in the general economic activity in western and southern India. As of March 31, 2026 and March 31, 2025, 94.44% and 93.33%, respectively of the Portfolio Companies of the Gaja Capital Funds were based in India. Any slowdown or perceived slowdown in the western or southern regions in India, where the majority of the Portfolio Companies of the Gaja Capital Funds are based, could adversely impact the funds managed and advised by it, which may in turn impact its cash flows and financial condition.

Dependence on limited partners for capital: The company depends on Limited Partners for capital infusion in the funds managed and advised by the company. These LPs are typically fund of funds managers, alternative asset managers, HNI, UHNIs, sovereign wealth funds, pension funds, insurance companies and family offices. Its ability to raise capital from the Limited Partners depends on a number of factors, including, the performance of a particular fund, including its historical rate of returns; the pace of distributions from a particular fund and from the funds managed and advised by other asset managers; applicable regulations in India regarding investments including the FDI Policy and FEMA Rules; and investment policies to which such Limited Partners are subject. Further, macroeconomic conditions, market disruptions, or changes in the regulatory environment could further impact the willingness or ability of the Limited Partners to meet their capital obligations in a timely manner. Additionally, the evolving preferences of the Limited Partners may require it to change the fund structures in the future which could increase its cost of raising capital at the scale it has historically achieved.

Competition in alternative asset management industry: The alternative asset management industry operates in a highly competitive environment, driven by the increasing demand for high yield investments and risk adjusted returns. Its business competes with other alternative investment funds, venture capital funds, private equity funds, specialized investment funds, hedge funds, corporate buyers, traditional asset managers and other financial institutions. In order to maintain a competitive edge, alternative asset managers emphasize innovation, strategic partnerships, and strong risk management frameworks. If it is forced to compete with other alternative asset managers on the basis of price, it may not be able to maintain the terms of its Management Fee and Carried Interest. This competitive pressure could adversely affect its ability to make successful investments and limit its ability to raise future funds, either of which would adversely affect its business, revenue, results of operations and cash flow.

Outlook

Gaja Alternative Asset Management and its subsidiaries are primarily engaged in managing and advising funds including Domestic Venture Capital Funds (DVCFs) and Alternative Investment Funds (AIFs) including offshore funds, which provide capital to companies in India. On the concern side, as a part of its business operations, it operates Subsidiaries in Cayman Islands and Mauritius. Each of these countries have distinct legal and regulatory systems and it may be subject to risks arising from the distinct legal, regulatory and operational environments in these jurisdictions. Its failure to effectively react to such situations in these markets could adversely affect its business, prospects, results of operations and financial condition.

The issue has been offering 3,61,84,210 shares in a price band of Rs 152-160 per equity share. The aggregate size of the offer is around Rs 550.00 crore to Rs 578.95 crore based on lower and upper price band respectively. Minimum application is to be made for 93 shares and in multiples thereon, thereafter. On performance front, its total income increased by 27.97% to Rs 1,577.97 million in Fiscal 2026 from Rs 1,233.07 million in Fiscal 2025. Its profit after tax for the year increased by 32.30% to Rs 819.59 million in Fiscal 2026 from Rs 619.51 million in Fiscal 2025.

Meanwhile, its primary business objective is to grow the enterprise value of the company. All the income generated by the funds managed and advised by it through Management Fees, Carried Interest and Income from Sponsor Commitment is received in its entirety by the company. Consequently, its shareholders have an equitable share in all the economics derived from the funds managed and advised by us. Additionally, it aims to leverage its established track-record to launch new funds under its flagship private equity strategy. In line with its past record, it intends to launch new funds with an increasing corpus, i.e., fund size, which it will drive greater growth in its Management Fee and further bolster its market competitiveness. It also aims to maintain higher than prescribed sponsor commitment in future funds that will not only align it well with its investors but also further enhance its overall fund economics.