EAAA India Alternatives Ltd, an alternative investment platform backed by Edelweiss Financial Services, has fixed the price band for its ₹1,200-crore initial public offering (IPO) at ₹1,585-1,665 per share.
The public issue will open for subscription on October 26 and close on October 28, according to an announcement issued on Wednesday. The bidding window for anchor investors will open on October 23.
At the upper end of the price band, EAAA India Alternatives will command an implied market capitalisation of ₹10,765 crore. At the lower end, the company’s valuation stands at ₹10,248 crore.
The IPO price band was approved by the company’s IPO Committee at a meeting held on October 20.
Minimum investment for retail investors
Investors can bid for a minimum of nine equity shares and in multiples of nine thereafter. At the upper end of the price band, retail investors will need to invest at least ₹14,985 to subscribe to one lot.
The issue is entirely an offer for sale (OFS) by the Edelweiss Group, with no fresh issue of shares. Consequently, EAAA India Alternatives will not receive any proceeds from the IPO, as the entire amount raised will go to the selling shareholder.
The issue size has been reduced to ₹1,200 crore from the ₹1,500 crore proposed in the draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) in January.
IPO allocation and listing schedule
Under the proposed allocation, 50% of the offer has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 35% for retail investors.
Axis Capital, Jefferies India, Motilal Oswal and Nuvama Wealth are the book-running lead managers to the issue. MUFG Intime India has been appointed registrar.
The company’s shares are expected to list on the BSE and the National Stock Exchange (NSE) on November 2.
Edelweiss Group’s earlier stake sale
In March, Edelweiss Financial Services completed the sale of a 4.4% stake in EAAA India Alternatives for ₹375 crore.
The upcoming IPO provides another opportunity for the group to sell its holding in the alternative investment platform through the public markets. Since the issue comprises only an OFS, it will not result in the issuance of new shares or directly provide additional capital to the company.
Diversified alternative investment platform
Incorporated in 2008, EAAA India Alternatives has more than 15 years of experience in managing long-term capital. The company operates a diversified, multi-strategy investment platform across alternative asset classes, with a focus on income and yield-oriented solutions for clients.
Its investment portfolio covers real assets, including infrastructure assets in the energy and transportation sectors, commercial real estate and private credit. The private credit business provides financing solutions across different levels of risk.
The company has offices in Mumbai, New Delhi, GIFT City and Singapore, supporting its investment operations across multiple markets.
The IPO will bring the alternative investment platform to the listed market, with the offer structured as a secondary share sale by the Edelweiss Group rather than a capital-raising exercise for the company.
