@Ajitesh_Garg At a Mcap of less than 400crs you definitely won’t get a AMC biz with a reputed brand attached to it.
Getting into a AMC biz would itself cost 75-100crs + attach Shriram’s brand to it and you would get the base valuation. Shriram brand is very regarded brand after Sundaram in South India.
As mentioned earlier ~1500cr E-AUM is already priced in this price just based on peer comparison. But for a startup like co valuations doesn’t work like this. You have to see the big opportunity size which it can tap. Hardly 15% of the total industry AUM comes from South India. Shriram has fixed deposits base of 32k crs. Surely it can sell MF’s in big numbers. Its a scale business with fixed costs upfront.
Product edge i.e. Funds is what they lack since there is no alpha yet. New CIO joined a year back. Implemented Quant strategy since Sep23. Check their Multi Asset fund which has generated 450bps alpha in last 6m (obviously can’t be extrapolated).
They hardly had any distributors and now started to onboard them. They had no broker distribution, no branch distribution, no employees, bad product. So AUMs should only go up from here if they generate alpha.
Promoters intent can’t be guessed. They might sell or grow this biz. But they would make it meaningful before they exit 
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