IPO Alert: Gaja Capital Gets SEBI Approval to Raise Funds

Private equity firm Gaja Capital has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The firm had filed its draft papers through the confidential route. This development makes Gaja Capital the first Indian private equity firm to get SEBI’s clearance for a public issue.

IPO Size and Funding

As per the Mint, the proposed IPO is expected to raise about ₹500-600 crore. In June, the firm raised ₹125 crore in a pre-IPO placement from investors such as HDFC Life, SBI Life, Akash Bhanshali, and Jagdish Master, valuing Gaja Capital at around ₹1,625 crore. JM Financial and IIFL Securities are acting as advisors for the issue.

Gaja Capital Background

Founded in 2004, Gaja Capital focuses on investments in consumer, education, and financial services sectors. The firm invests in mid-market companies and has backed several businesses, including Fractal Analytics, RBL Bank, TeamLease, Avendus, LeadSquared, Lighthouse Learning, Educational Initiatives, and Signzy. Gaja Capital now operates under the name Gaja Alternative Asset Management Ltd.

Recent Investments

In June 2024, Gaja Capital led a $20 million (₹167 crore) Series C funding round in Eggoz, a company in the branded egg business. 2 months later, it invested in Weaver Services, an affordable housing finance firm that is acquiring Centrum Housing Finance for around ₹600 crore. These are among the firm’s recent deals in India’s mid-market segment.

Leadership and Structure

Earlier this year, Gaja Capital appointed U.K. Sinha, former SEBI chairman, as non-executive chairman. The executive board includes founders Gopal Jain, Ranjit Shah, and Imran Jafar. Non-executive members are Shailesh Haribhakti, Prithvi Haldea, Manish Sabharwal, Arindam Bhattacharya, and Shital Mehra.

Industry Background

India’s alternative investment industry manages assets worth about $400 billion and is projected to grow to $2 trillion in the next decade. Globally, alternative assets are estimated at $25 trillion, with investors steadily increasing their exposure to private markets.

Read More: IPO Alert: Milky Mist Dairy Receives SEBI Approval to Raise Funds!

Conclusion

The SEBI clearance allows Gaja Capital to move ahead with its IPO plans, marking a first for India’s private equity sector.

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