Parag Parikh’s Soaring Valuation Creates Dozens of Crorepati Employees Amid Stock Market Frenzy
Mumbai/Bengaluru:
Parag Parikh Financial Advisory Services (PPFAS), the boutique investment firm known for its disciplined approach to value investing, is making waves in the unlisted market — both for its meteoric valuation and the unexpected wealth it has generated for employees.
With the firm’s valuation now touching ₹10,620 crore (approx. $1.23 billion), more than 50 employees — about 20% of the 250-member workforce — have become crorepatis through Employee Stock Ownership Plans (ESOPs). Their collective stake of 15% in the company is valued around ₹955 crore, averaging ₹16 crore in wealth per employee.
According to CEO Neil Parikh, ESOPs were granted to employees who joined between 2018 and 2021. While not everyone has crossed the lock-in period, many have exercised their options and sold shares through an internal private platform managed by the company.
Valuation Surge Driven by Mutual Fund Milestone
The valuation boost follows a key milestone: PPFAS Flexi Cap Fund crossed ₹1 lakh crore in assets under management (AUM) on May 7, 2025 — becoming the first actively managed fund in India to do so.
In just over a month, the stock price has jumped 44% — from ₹8,200 (as of April 30) to ₹11,800 per share in the unlisted market — feeding the bullish sentiment. A broker said this momentum aligns with broader enthusiasm in the unlisted space, triggered partly by NSE’s pending IPO approval.
Leadership & Ownership Structure
The Parag Parikh family (Geeta, Neil, and Sahil Parikh) retains a dominant 81.64% stake, while CIO Rajeev Thakkar holds nearly 6%, now worth over ₹630 crore. The remaining 1–2% is held by close associates of the late Parag Parikh.
Despite the valuation surge, Neil Parikh clarified: “We have no plans to list in the next five years.” However, to ensure liquidity for employees, the company facilitates private share sales through external buyers.
What Lies Ahead for PPFAS?
- Alternative Asset Arm Launched: PPFAS recently inaugurated its IFSC unit in GIFT City to explore inbound global investment opportunities.
- Wealth Management Expansion: The firm is strengthening its personalized advisory services.
- PMS Revival: Plans are underway to revive Portfolio Management Services to meet growing demand for active management.
- Stronger Fixed-Income Offerings: Efforts are being made to diversify mutual fund offerings and attract conservative investors.
As of March 31, 2024, the company reported a net profit of ₹146 crore and reserves of ₹298 crore. While analysts question the premium valuation, brokers attribute it to market-wide excitement in anticipation of multiple unlisted firm listings.
