Abakkus could be valued at around Rs 9,000-10,000 crore based on growth and business mix

New business data points to the fact that Abakkus Asset Manager could be valued at around Rs 9,000-10,000 crore in its proposed IPO, based on its FY26 earnings and valuation multiples received by listed peers, although the firm's shift towards mutual funds could moderate its high fee yields over time. At present, listed peers include ICICI Prudential AMC, Aditya Birla Sun Life AMC and UTI AMC.

According to the DRHP filed on September 22, the firm noted topline of Rs 796 crore and earnings after tax of Rs 327 crore in FY26, compared with topline of Rs 707 crore and earnings of Rs 258 crore in FY25. The IPO will be entirely an offer for sale of 1.5 crore shares by promoter Abakkus Expert Professionals LLP, with no fresh capital coming into the firm.

At 30x FY26 earnings, Abakkus would have an implied equity value of around Rs 9,810 crore, while a 35x multiple would value it at around Rs 11,445 crore. Sector market watchers are broadly looking at a 30-35 times earnings framework, with the practical valuation estimate closer to Rs 9,000-10,000 crore. EPS for FY2026 as per the DRHP is Rs 21.80. Valuation compared to peers

Listed asset managers are at present trading at a range of around 21x-45x, reflecting differences in business mix, profitability and expansion. Market watchers say that Abakkus' proposed valuation cannot be compared directly with a pure-play mutual fund firm because a significant portion of its current earnings comes from alternatives.

Vinit Boljinkar, Head of Equity Research at Ventura stated Abakkus should be assessed against both AMC peers and wealth and PMS-AIF platforms, given its different business mix. FY26 quarterly average AUM stood at Rs 41,409 crore, with around 92% coming from PMS, AIF, PE and UCITS products, which carry relatively elevated fee structures.

“A 30-35x FY26 PAT multiple is justified as a midpoint between traditional AMC valuations and 360 ONE WAM, which is the closest listed comparable due to its PMS/AIF-oriented model,” Boljinkar stated.

Recent transactions in the asset management sector additionally provide a reference point, although differences in vintage and business mix stay important. For example, in July 2026, it was noted that Rajeev Thakkar, CIO of PPFAS Mutual Fund, sold a 0.33% stake in parent firm Parag Parikh Financial Advisory Services, valuing the unlisted firm at Rs 15,800 crore.

The valuation of PPFAS at more than 40 times trailing earnings would be difficult to directly apply to Abakkus as established mutual fund franchises can command elevated valuations due to their longer track records, distribution networks and relatively sticky assets, an market observer who did not want to be named stated.

Mutual funds could softer blended yields

The biggest valuation question for Abakkus is the changing mix of its asset management business. The firm has built much of its scale through portfolio management services (PMS) and alternative investment funds (AIFs), while it entered the mutual fund business only in December 2025.

Abakkus' discretionary PMS assets stood at Rs 18,538 crore as of March 31, 2026, giving it a 5.3% share of India's equity strategy discretionary PMS segment, according to an ICRA report cited in the DRHP.

Mutual funds, that stated, generate much softer fee yields than alternatives. Newer mutual fund assets can generate around 35-40 basis points, compared with a much elevated yield for Abakkus' alternatives business, market watchers estimate

As mutual funds become a larger part of Abakkus' overall assets, its blended yield could slide from around 160 basis points at present to roughly 100-120 basis points over the next three to four years, according to the estimate.

Boljinkar stated the shift towards mutual funds was already visible in the numbers. FY26 MF quarterly average AUM stood at Rs 3,129 crore, or around 7.6% of total QAAUM, while the core PMS, AIF, PE and UCITS book continued to generate a yield of around 2%.

The blended operating topline yield declined from 1.91% in FY25 to 1.83% in FY26, he stated, adding that the slide is likely to continue as MF contribution increases, although operating leverage from scale could partly offset the impact.

That makes the quality of incremental AUM important for earnings expansion. A rapid gain in assets through mutual funds may not translate into the same level of topline expansion that Abakkus has generated from its alternatives business.

The firm is likely to stay an alternatives-led business in the near term, but mutual funds are anticipated to be the main source of incremental scale. That creates a valuation trade-off: Abakkus can grow AUM rapidly while its average topline yield declines, experts say.

PMS faces competitive pressure from mutual funds, SIFs

Abakkus' rapid expansion in PMS has additionally begun to face a more competitive environment.  The emergence of specialised investment funds (SIFs) adds another potential source of competitive pressure for PMS and AIF products, particularly for market participants looking for more differentiated strategies within a regulated fund structure.

“PMS will have its own standing in the industry, but if I want to see incremental expansion, then there will be a question mark,” the market observer stated. The longer-term impact will depend on the performance track record of SIFs and the extent to which market participants shift incremental allocations away from PMS and other alternatives. Abakkus Asset Managers received SEBI approval to launch SIF products under the Fokkus brand name on September 22.