EAAA IPO: itna expensive valuation? 🤔

Kunal Saraogi • 5 days ago

Original source

What This Video Is About

The video discusses the upcoming IPO of E-TRIPLE A, also known as LW Alternate Asset, an asset management company that manages alternative assets for high net worth individuals and institutions.

Major Ideas Discussed

  • The company has two major income sources: fee-based income and bonus, where it earns a fee from clients every year and a bonus if the client's return exceeds 1%.
  • The company's valuation is over ₹100 crores, and its market capitalization will be high if it lists at the higher end of its price band, making the listing seem expensive.
  • The company is listing at 40 times its fee-based AUM, which is higher than similar companies like KKR and Blackstone that list at 25 times.
  • The video compares E-TRIPLE A with Gaja Capital, another AMC that listed recently but has not performed well, with its stock falling continuously and trading 25-26% below its listing price.
  • The video advises investors not to rush to invest in this IPO and to wait for the next big IPO where they can make money, or to buy the stock from the market when it becomes cheaper.

What to Watch Next

Investors should monitor the performance of E-TRIPLE A's stock after listing and wait for the right opportunity to invest.