Parag Parikh unlisted shares triple: What’s driving this AMC’s breakout moment?

Unlisted shares of Parag Parikh Financial Advisory Services (PPFAS) have surged over 220% within a year, climbing to ₹17,500 in September 2025 from ₹5,400 in October 2024, driven by rapid growth in AUM, profitability, and investor count, according to a report by Prequity.

The rally in PPFAS’s unlisted stock mirrors the mutual fund’s expanding footprint. From just 80,000 investors in 2019, the fund house now serves over 49 lakh retail investors. Assets Under Management (AUM) have jumped from ₹1,961 crore in 2019 to ₹1,06,357 crore in 2025 — a more than 50-fold increase.

Financial performance has strengthened in parallel. Operational revenue nearly doubled year-on-year to ₹428.84 crore in FY25, while profit after tax climbed to ₹246.60 crore. Earnings per share (EPS) rose to ₹284.30, more than doubling from ₹125.25 the previous year.

This momentum has sparked interest in the pre-IPO market, where unlisted shares are traded through platforms like InCred Money, Planify, Precize, and Unlisted Zone. However, industry professionals say unlisted equities should be approached as alternative investments with limited liquidity. They point out that investors need to be prepared for a longer holding period, typically until the company lists, given the lack of active markets.

Unlike listed equities, unlisted shares do not benefit from daily price discovery. Prices may vary across platforms, making valuation inconsistent. Investors are advised to compare unlisted valuations with listed peers like HDFC AMC or Nippon AMC to assess relative value.

PPFAS holds a Market Cap to AUM ratio of 10%, equal to Nippon AMC and below HDFC AMC’s 16%, but ahead of Aditya Birla AMC (7%) and UTI AMC (4%). With a heavy tilt towards equity AUM — which typically earns higher management fees — PPFAS is seen as well-positioned among its peers.

Advisors recommend that investors treat unlisted shares as high-risk, high-reward plays and cap exposure at 10–20% of their overall portfolio. Gains on unlisted shares are taxed differently: those held under 24 months are treated as short-term and taxed per income slab, while long-term gains are taxed at 12.5%.