EAAA India Alternatives

EAAA India Alternatives

By Geetanjali Kedia
about 6 days ago

IPO Size: Rs. 1,200 cr, entirely Offer for Sale (OFS)

  • By promoter Edelweiss Securities (95% to drop to 84%)

Price band: Rs. 1,585-1,665 per share

M cap: Rs. 10,765 cr (IPO is 11% of m cap)

IPO Date: Mon 26th Oct to Wed 28th Oct 2026, Listing Mon 2nd Nov 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

Real Estate & Debt Asset Manager

EAAA India Alternatives is a 17-year-old Mumbai-based alternate asset managed with assets under management (AUM) of Rs 95,345 cr as of 30.6.26. Since fee paying AUM is Rs. 48,623 cr, it is the real AUM for all practical purposes, split 60:40 between real estate and private credit (debt). Company serves 11,000 clients, with 2/3rd AUM being domestic and 1/3rd outside India.

 

3 Streams of Income

FY26 total income of R. 963 was split into 3 broad buckets:

  1. Management Fee (60% of topline): predictable component, calculated as ~1.4% of fee paying AUM
  2. Variable Return (Performance Fee, 30% of topline): highly volatile, varies between 40-90 bps of fee paying AUM. FY26 variable fee of Rs. 290 cr was lower than FY23’s Rs. 371 cr.   
  3. Proprietary Book Income (~10% of topline): varies between 30-50 bps of fee paying AUM, fell 20% YoY in FY26

 

Cost to Income Ratio on Higher Side

Cost to income ratio of 64-68% is much higher than 25-40% for mutual fund companies and even higher than many wealth managers like Anand Rathi Wealth (57%), Gaja Alternative (45%), being closer to Nuvama (70%) and 360 One (65%).  

As a result, while revenue yield is 250 bps, high cost to income ratio keeps PAT yield at 60-70 bps.  

FY26 PAT stood at Rs. 265 cr with RoE being healthy at 26%, as fund management business is asset light. Q1FY27 topline and PAT stood at Rs. 336 cr and Rs. 81 cr respectively.

 

Fully Priced

M cap of Rs. 10,756 cr implies a current year PE multiple of 34x, based on Q1FY27 annualised EPS of Rs.12.3. EAAA India’s PAT yield of 60-70 bps is higher than listed mutual funds’ 25-30 bps. But similar sized AMCs such as UTI and Aditya Birla are ruling at much lower PE multiples of 20-24x.

Recently listed PE investor Gaja Capital is down 22% from its IPO price of Rs. 160 per share in Aug 2026. That will weigh adversely on this IPO, as both companies are in the alternative investment space.