Mumbai, Aug 26 (SocialNews.XYZ) Gaja Alternative Asset Management shares witnessed selling pressure on Wednesday after making a strong debut on the stock exchanges. The stock had initially listed at a premium of nearly 16 per cent over its IPO price of Rs 160 per share.
On the BSE, the shares opened at Rs 185.20, marking a gain of 15.75 per cent over the issue price. On the NSE, the stock made its debut at Rs 185, registering a 15.62 per cent premium.
However, the initial gains failed to sustain as investors rushed to book profits following the strong listing. The Gaja Alternative share price subsequently declined more than 8 per cent from its listing price. Despite the correction, the stock continued to trade more than 5 per cent above its IPO price.
The strong debut came after robust investor interest in the company's Rs 550-crore initial public offering. The IPO was subscribed 31.33 times by the final day of bidding on Friday, reflecting strong demand across investors.
The public issue was offered in a price band of Rs 152 to Rs 160 per equity share. It comprised a fresh issue of shares worth up to Rs 450 crore and an offer-for-sale component of up to Rs 100 crore.
Gaja Alternative Asset Management plans to utilise the proceeds from the fresh issue towards repayment of debt, seeding new investment funds and general corporate purposes.
The company earns revenue primarily through three streams — management fees, carried interest and income from sponsor commitments. Its limited partners are spread across more than 20 countries, including India, the US, Europe and the Middle East.
The post-listing decline comes as investors assess the company's valuation and growth prospects after its strong market debut. Despite the fall from its listing level, the shares remained above the IPO issue price during the trading session.
Source: IANS
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