- Gaja Capital is aiming for a valuation of Rs 2,256 crore ($237 million) for its parent entity in its IPO, which is set to open for subscription next week.
- Gaja Capital reduced its IPO size due to strong profitability, as explained by CEO Gopal Jain: "It's less about the markets and more about our earnings. So we've had very good profitability this year, and when we filed, our board asked how we could argue that we needed the same amount of capital. So, we roughly reduced the issue size by our profits."
- The firm reported Rs 82 crore in profits in FY26, a 32% year-on-year increase, with revenue from operations growing 11% to Rs 135.5 crore.
- Gaja Capital received approval for its maiden secondaries fund, aiming to raise Rs 1,250 crore, and is laying groundwork for its fifth flagship vehicle targeting Rs 2,500 crore.
- From the fresh issue, Gaja plans to use Rs 105 crore for sponsor commitment to the secondaries fund, Rs 210 crore to its fifth PE fund, and Rs 57 crore for the balance sponsor commitment to its fourth fund.
- Gaja Capital emphasizes its strong sponsor commitment strategy, with Jain noting, "We have sponsor commitments way beyond the minimum. Due to this, we tend to get good investors at good terms and we raise funds at a low cost, which on a net basis works in favour of the business."
- Gaja Capital's sponsor commitment has averaged 6.4% of all funds, with the last fund at 8.5%, and the strategy is to increase it to about 10%, as stated by Shah.
Gaja Capital is set to open its IPO subscription next week, aiming for a valuation of ₹2,256 crore ($237 million). The firm has reduced its IPO size to ₹550 crore ($58 million), down from a previous target of ₹656 crore, citing strong profitability as the reason for the adjustment.
According to its red herring prospectus (RHP), the IPO will consist of a primary issue of ₹450 crore ($47 million) and an offer-for-sale (OFS) of ₹100 crore. Gopal Jain, managing director and CEO, stated, “It's less about the markets and more about our earnings. So we've had very good profitability this year...”26
In FY26, Gaja reported profits of ₹82 crore, marking a 32% year-on-year increase, with revenue from operations growing by 11% to ₹135.5 crore. The firm plans to allocate ₹105 crore from the fresh issue to meet sponsor commitments for its secondaries fund and ₹210 crore to its fifth PE fund.3
Jain emphasized the importance of sponsor commitments, stating, “We have sponsor commitments way beyond the minimum... which on a net basis works in favour of the business.” Gaja aims to increase its average sponsor commitment from 6.4% to 10% in future funds, reflecting its strategic focus on strong investor relationships.7
“The firm reported Rs 82 crore in FY26 profits, up 32% year-on-year, with revenue growing 11% to Rs 135.5 crore. CEO Gopal Jain said the issue was reduced because of strong earnings, and the firm plans to use Rs 105 crore for its secondaries fund sponsor commitment.”
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