Gaja Alternative Asset Management shares witnessed profit booking in debut trade on Wednesday after listing at a premium of nearly 16 percent over the issue price.


The shares fell to Rs 170.55 per share on the NSE, down nearly 8 percent from the listing price of Rs 185.

However, the stock continued to trade nearly 9 percent above its IPO price of Rs 160.

Shivani Nyati, Head of Wealth at Swastika Investmart, said earnings from alternative asset management can be lumpy due to performance fees, and some volatility and profit booking after listing cannot be ruled out.

Dr Ravi Singh, Chief Research Officer at Master Capital Services, said if the company's profits remain heavily dependent on irregular carried interest, the current valuation may warrant a more cautious interpretation.

"The company derives income from three income streams -- Management Fee, Carried Interest and Income from Sponsor Commitment. The Limited Partners of the Gaja Capital Funds are spread across more than 20 countries including India, USA, Europe and the Middle East," he said.