Why traders are piling into Parag Parikh AMC’s unlisted shares

The agency’s unlisted shares have greater than doubled since early February, climbing to ₹17,900 apiece as of 25 September. Analysts say the surge stems from a mixture of sturdy earnings and a restricted provide of shares.

In accordance with its annual report, the asset supervisor posted a 52% improve in revenue after tax to ₹246 crore in FY25. Its revenues have been ₹428 crore in FY25, up 50% from the earlier fiscal. Between FY24 and FY25, its property underneath administration grew 1.5 occasions to ₹1.06 trillion. The corporate has a market share of 1.4% within the whole property underneath administration for the mutual fund business.

The corporate has delivered sturdy monetary progress within the final 5 years: revenues have compounded at about 87% yearly over the previous 5 years, whereas earnings have grown at a 132% compound annual progress price (CAGR), stated the analysis workforce at Incred Cash, a platform to purchase unlisted shares.

Such blistering progress has created sturdy demand for the inventory within the unlisted market. Solely about 760,000 PPFAS shares are tradeable in contrast with 66 crore for its peer SBI Funds Administration, in accordance with annual reviews and information from InCred Cash and Unlisted Zone, a platform to purchase unlisted shares.

Whereas the precise variety of tradeable shares within the unlisted house can’t be decided, the calculation is mostly primarily based on non-promoter holdings, since promoters usually don’t offload their shares.

In contrast to listed shares, unlisted shares aren’t traded on inventory exchanges. These transactions occur over-the-counter through specialised brokers, wealth managers, or on-line platforms.

“With restricted provide of PPFAS shares and robust enterprise fundamentals, demand has remained persistently excessive—driving the sharp surge in its inventory worth,” stated Manan Doshi, co-founder of unlisted share buying and selling platform Unlisted Enviornment.

This marks a shift in how asset managers are being considered—now not simply as automobiles to generate returns on the funds they handle, but additionally as companies able to rewarding shareholders.

Model notion is one other tailwind. The PPFAS Flexicap Fund, its flagship product, has delivered constant progress, a 19.14% CAGR over the previous decade, in accordance with Worth Analysis. This has helped cement credibility and visibility in a crowded market.

PPFAS vs SBI Mutual Fund

Though a lot smaller than India’s largest asset administration firm, SBI Mutual Fund, a comparability is inevitable. Amongst asset administration corporations, SBI Funds Administration—the corporate behind SBI Mutual Fund—is the one different firm moreover PPFAS whose shares are traded within the unlisted house.

SBI Funds Administration has a market capitalisation of ₹1.4 trillion, whereas PPFAS has a market capitalisation of ₹13,419 crore, as per information from Incred Cash. The property underneath administration of SBI MF is way greater at ₹10.72 trillion versus PPFAS, which had property value ₹1.06 trillion, as of March 2025.

SBI Mutual Fund posted a 23% improve in revenue after tax to ₹2,531 crore in FY25, per its annual report. Shares of SBI Funds Administration have risen 1.5% since February.

Doshi of Unlisted Enviornment stated the runway for progress for PPFAS can be a lot greater than SBI Funds Administration because the latter is in a “mature stage”.

One new progress lever is the retail mutual fund schemes from GIFT Metropolis, the place PPFAS has secured a license however is but to launch merchandise.

Broader development

The passion displays a wider investor hunt within the unlisted house. “Over the previous yr, high quality unlisted shares have rallied sharply as traders have seen decrease allotments on the time of IPOs resulting from oversubscriptions,” stated Manick Wadhwa, director at SKI Capital. “They’re seeing reasonable however regular positive factors post-listing.”

Traders are chasing unlisted names that would ultimately checklist, resulting in the run in high quality unlisted shares like PPFAS.

Participation by retail traders in SME IPOs, has elevated from a mean of 408 in FY20 to 170,069 in FY25, stated Pranav Haldea managing director of Prime Database Group, a capital markets information supplier.

That stated, traders have additionally burnt their fingers attempting to make hay by betting on unlisted shares of corporations on the verge of going public.

Mint reported on 24 September how late entrants into NSE’s unlisted shares have been singed by a steep correction in its inventory worth over the previous two weeks, compounding losses since July’s report highs. The autumn has harm retail shareholders probably the most, whose numbers quadrupled within the three months via June.