EAAA India Alternatives Ltd IPO

About IPO

EAAA India Alternatives Limited is launching its initial public offering (IPO) with an Offer for Sale of up to ₹1500 Crore. The IPO aims to provide an opportunity for existing shareholders to offload their stake while enabling public participation in the company. The credit of shares will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.

Objectives of EAAA India Alternatives Ltd

The objects of the Offer are to (i) carry out the Offer for Sale of [●] Equity Shares of the face value of ₹ 5 each aggregating up to ₹1500 crore by the Promoter Selling Shareholder, and (ii) achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Industry Outlook

The Alternative Investment Funds (AIF) segment is among the fastest-growing investment categories in India, driven by low market penetration and increasing investor interest. Over the past decade, the Indian AIF industry’s Assets Under Management (AUM) expanded from USD 55.2 billion in December 2013 to USD 124.3 billion in December 2023, reflecting a CAGR of 8.5%. Also, the alternative investment sector is witnessing rapid expansion, with private credit and real assets projected to comprise 45% of the total market by 2028 (CARE Report). This growth underscores the rising demand for alternative investments in India's evolving financial landscape.

Company Information

EAAA India Alternatives Ltd is a leading alternative investment platform in India, managing an AUM of ₹572.62 billion as of September 30, 2024, with a diversified, multi-strategy approach focused on real assets and private credit. Supported by its subsidiary, Sekura India Management Limited, the company ensures efficient operations, monitoring, and turnaround management. Its ARR AUM grew at a CAGR of 25.65%, reaching ₹445.43 billion in FY 2024. 1. Their key business strategies include: (i) real assets (“Real Assets”) and (ii) private credit (“Private Credit”). Their wholly owned subsidiary, Sekura India Management Limited (“Sekura”), proficiently supports their various business strategies, including operations, maintenance, monitoring, efficiency improvement, and turnaround management and is part of their portfolio operating and management team (“POMT”).

Risks of EAAA India Alternatives Ltd IPO

1. Revenue Dependency on Fund Performance
   Poor fund performance may slow AUM growth and reduce investor reinvestments, affecting revenue and profitability. Rising competition and more attractive fee structures from rivals could divert clients, while regulatory changes or strategic fee adjustments may further impact revenue. A decline in interest for alternative investments due to market conditions or shifting investor preferences could limit capital inflows. Additionally, offshore investors may hesitate due to political instability, regulatory shifts, and currency fluctuations. Factors such as market volatility, tax law changes, and investment risks pose further challenges to financial stability.

2. Challenges in Expanding Business Strategies
   Entering new markets or launching new strategies comes with regulatory, operational, and market risks. Lack of experience, skilled personnel, or market acceptance could impact success. Competition from global players with larger capital reserves may challenge new product launches.

3. Impact of Fund Underperformance
   A decline in fund returns could lower revenue from Variable Additional Returns and ARR AUM. Poor performance may also make capital raising for new funds more difficult. Underperformance could lead to potential giveback obligations in specific scenarios.

4. Operational Challenges in Client Management
   Delays or errors in onboarding, offboarding, or documentation could lead to regulatory penalties and inefficiencies. Failure to provide timely investor reports may result in compliance issues and reputational damage.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

Link Intime India Private Limited is the registrar of the EAAA India Alternatives Ltd IPO. The book-running lead managers are:

• Axis Capital Limited
  
• Jefferies India Private Limited
  
• Motilal Oswal Investment Advisors Limited
  
• Nuvama Wealth Management Limited
  

Business Model

EAAA India Alternatives operates a multi-strategy alternative investment platform, managing ₹57,262 crores AUM as of September 30, 2024.

• Revenue Streams: Earns through management fees (ARR Revenue) and performance-based returns (Variable Additional Return).
• Core Strategies: Focuses on Real Assets (infrastructure, real estate, energy transition) and Private Credit (corporate financing, turnaround funding).
• Client Base: Serves institutional investors, UHNIs, and family offices across India, North America, and Europe.
• Subsidiary Support: Sekura India manages asset operations and optimisation

Company Growth Trajectory

EAAA India Alternatives Ltd's AUM grew at a CAGR of 33.59%, reaching ₹54,679 crore in FY24, while ARR AUM expanded by 25.65% to ₹42,622 crore.

Company Market Position

As of September 30, 2024, through the funds that they managed, they had 3,682 client relationships globally and in India, including 728 repeat clients (i.e., clients who have invested in more than one of our funds) in their funds and 2,715 clients added from April 1, 2021 to September 30, 2024.

They have a diverse client base across institutional clients, family offices and UHNIs/HNIs;Over the past three financial years and six months, it raised ₹260.79 billion in capital, deployed ₹232.12 billion, and realised ₹229.77 billion in exits. With 3,682 clients, including 728 repeat investors, its AUM comprises 54.83% institutional investors and 45.17% UHNIs, HNIs, and family offices across India, North America, Europe, and beyond. Strong performance across market cycles and successful fund series reinforce its ability to sustain investor confidence and adapt to market dynamics.

How do you check the allotment status of EAAA India Alternatives Limited?

You can check the allotment status of shares either on the Bombay Stock Exchange (BSE) website or on the website of Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check..”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is EAAA India Alternatives Limited
• Enter your application number or PAN number.
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of Bigshare Services Private Limited:

• Visit the website of Link Intime Private Ltd
• Click on Allotmentment Status
• Choose the name of the company from the ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to Apply for EAAA India Alternatives Limited?

Here are the steps to apply for EAAA India Alternatives Ltd IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.