Business Profile of EAAA India Alternatives Limited
EAAA India Alternatives Limited was incorporated in 2008 and it offers assets under management (AUM) platform in India. It is a diversified, multi-strategy platform, in large, under-tapped and fast-growing alternative asset classes, focusing on providing income and yield solutions to the clients. Sekura India Management Limited (“Sekura”) is wholly owned subsidiary of company which proficiently supports the company’s various business strategies, including operations, maintenance, monitoring, and efficiency improvement. The company works in two business verticals “real assets” and “private credit”. As of September 30, 2024, EAAA India Alternatives Limited clients are distributed across key geographies: India, North America, Europe, and the rest of the world.
Objective of EAAA India Alternatives IPO
As per the draft red hearing prospects, the IPO issue consists only OFS. The OFS issue consists of XXXX shares at the face value of ₨ 5.00 each aggregating up to ₹ 15,000.00 millions. There are only OFS and main objective of company is to achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Details of EAAA India Alternatives IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹5.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₨ 15,000.00 million | |
| Fresh Issue | N.A |
| N.A | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₨ 15,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
EAAA India Alternatives IPO: Issue Price & Size
The issue price of EAAA INDIA ALTERNATIVES LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has only OFS issues aggregating up to ₹ 15,000.00 million at the price of ₨XXXX.
Launch Date of EAAA India Alternatives IPO
The IPO opening date of EAAA INDIA ALTERNATIVES LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of EAAA India Alternatives Limited
| Particulars (Rs in Millions) | Ended 31 March 2025 |
Ended 31 March 2024 |
Ended 31 March 2023 |
| Income | |||
| Revenue from operations | 3,593.14 | 2,335.53 | 1,513.17 |
| Other income | 448.09 | 160.87 | 198.33 |
| Total income | 4,041.23 | 2,496.40 | 1,711.50 |
| Expenses | |||
| Operating and maintenance expenses | 268.55 | 220.34 | 167.84 |
| Employee benefit expenses | 214.32 | 299.59 | 220.83 |
| Finance costs | 3,053.85 | 1,940.63 | 1,310,22 |
| Depreciation and amortization expenses | 1,378.12 | 981.68 | 672.76 |
| Other expenses | 450.15 | 396.64 | 919.43 |
| Total expenses | 5,364.99 | 3,838.88 | 3,291.08 |
| Loss before share of loss of joint ventures | ( 1,323.76 ) | ( 1,342.48 ) | ( 1,579.58 ) |
| Share of loss of joint ventures | – | 48.54 | 15.55 |
| Loss before tax | ( 1,323.76 ) | ( 1,391.02 ) | ( 1,595.13 ) |
| Tax expense | |||
| Current tax | 8.29 | – | 1.28 |
| Adjustment of tax relating to earlier years | 1.90 | – | 1.82 |
| Deferred tax ( credit ) | ( 38.29 ) | ( 1.34 ) | ( 85.55 ) |
| Total tax expense | ( 28.10 ) | ( 1.34 ) | ( 82.45 ) |
| Loss for the period | ( 1,295.66 ) | ( 1,389.68 ) | ( 1,512.68 ) |
Key financial ratios of EAAA India Alternatives Limited
| Particulars | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 ( Standalone ) |
| Cost / Income (Variable Additional Return Related) | 75.65 % | 42.12 % | NA |
| PBT Yield | 0.53 % | 1.04 % | 0.18 % |
| PAT Yield | 0.43 % | 0.99 % | 0.18 % |
| ROE | 27.30 % | 90.99 % | 38.28 % |
| Total Yield | 1.23 % | 1.98 % | 0.64 % |
| ARR Revenue Yield | 0.95 % | 0.84 % | 0.64 % |
| Variable Additional Return Yield | 0.28 % | 1.14 % | NA |
| Cost / Income ( Total ) | 57.16 % | 47.26 % | 71.34 % |
| Cost / Income ( ARR Revenue Related ) | 51.81 % | 54.22 % | 52.33 % |
Promoters & Shareholding EAAA India Alternatives IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 100.00% shareholding in company.
| Name of shareholder | Number of shares | Percentage of shareholding |
| Promoter & Promoter Group | 64,280,246 | 100.00 |
| Public | – | – |
| Total | 64,280,246 | 100.00 |
Should You Subscribe To EAAA India Alternatives IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of EAAA India Alternatives IPO
Scaled and experienced player in market
With more than 15 years of experience and a seasoned player with significant scale, their market position helps company leverage the strong growth momentum of the Indian real assets and private credit markets. As of September 30, 2024, company AUM totaled to ₹572.62 billion and ARR AUM totaled to ₹445.43 billion. The company continues to grow its presence in the real assets and private credit space, focusing on delivering value to expanding client base.
Diversified alternatives platform
The company offer a wide range of alternative investments products, primarily focused on income and yield sub-strategies, including performing credit, special situations, real estate credit, core credit, infrastructure yield, commercial real estate yield, perpetual capital, and energy transition. Their multi-strategy platform enables to provide bespoke solutions tailored to their clients’ unique requirements. With this approach, they have successfully diversified their portfolio by introducing new products across various strategies.
Diverse and longstanding client base
As of September 30, 2024, through the funds that company managed, they had 3,682 client relationships globally and in India, including 728 repeat clients in funds and 2,715 clients added in from April 1, 2021 to September 30, 2024. They have a diverse client base across institutional clients, family offices and UHNIs/HNIs; approximately 54.83% of our AUM are contributed by institutional clients, including pension funds and insurance companies, while the remaining 45.17% are contributed by UHNIs/HNIs and family offices.
Comprehensive risk management systems
The company has implemented a comprehensive risk management framework. At the enterprise level, risk monitoring practices ensure proactive identification and management of existing and emerging risks. With respect to their business strategies, company conduct risk-assessment at the pre-investment stage, as well as conduct regular monitoring in the post-investment phase. This risk governance framework is further supplemented by in-house technology capabilities, which enables them to monitor assets and products effectively.
Risk Factors of EAAA India Alternatives IPO
Illiquid assets pose financial risk
The fund investment of company is long tenured privately negotiated instruments. Illiquidity or a reduction in the value of investments could significantly harm our business, financial condition, and results of operations. Many of the assets in which company invest are generally long-term investments, which may not be readily marketable at a favorable price or at all, until certain appropriate time. If market conditions deteriorate or specific investments do not perform as expected it may adversely affect business.
Key advisor exit may hurt funds
The success of company funds is heavily dependent on the expertise, judgment, and leadership of certain key individuals, often referred to as “key advisors” or “key persons”, which includes the Managing Director and key personnel’s. These individuals possess unique skills and experience critical to executing our investment strategy in managing company fund’s operations effectively. Departure of any “key advisors” may lead to a suspension of capital calls or even terminate the investment period of funds.
Potential liabilities from divested entities
As part of the strategic realignment of business operations Promoters and group of companies has, over a period of time, discontinued or divested various subsidiaries and other entities. While these discontinued or divested subsidiaries or entities were sold or closed following due legal and regulatory processes. Any unforeseen litigation, tax demands, & regulatory inquiries could have an adverse effect on the financial position and results of operations.
Client concentration risks
As of September 30, 2024, company top 10 clients contributed to 44.78% of AUM. They consist of institutional investors, ultra-high net worth individuals (“UHNIs”), high-net-worth individuals (“HNIs”) as well as family offices. This concentration can lead to potential liquidity issues and increased risk if there are significant redemptions or changes in the investment behavior of these clients. The dependency on a few large clients may pose a threat to the financial stability.
EAAA India Alternatives IPO Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies’ stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the EAAA INDIA ALTERNATIVES LIMITED is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
