PPFAS could list in 2030 as final ESOPs vest five years from now, says Neil Parikh

Neil Parikh, CEO, PPFAS.

Parag Parikh Financial Advisory Services (PPFAS) may consider listing on the bourses in 2030, around five years from now, said Neil Parikh, the financial major's chief executive officer at the annual Unitholders' Meet, citing employee stock option (ESOP) timelines and tax considerations as key factors.

Parikh said the fund house has granted ESOPs to employees over the years, and the final batch will vest around 2029 to 2030. “The plan is that we probably are looking at a listing, but about five years from now, in 2030,” he said.

He noted that delaying the IPO would prevent a significant tax burden on staff. “Listing before that will be a very big tax out-go for the employee,” Parikh explained. As long as the company remains unlisted, employees are taxed on the book value of shares. “But if it gets listed, and it lists at quite a bit of a premium, then the tax on the employees is a lot,” he said.

Parikh emphasised that the timeline is flexible. “Like we mentioned, we’re pretty patient people… that’s the plan. I don’t know if it’s going to happen or not happen,” he said. Still, he acknowledged that the company is “actually now finding that we could list in 2030.”

Further, Parikh noted that PPFAS began its city operations out of Gujarat and now has three strategies in place. “The global PMS is live,” he noted, adding that it is tailored for the HNI segment with a minimum investment of $75,000. Both discretionary and advisory offerings “are up and running already.”

For resident Indians using the Liberalised Remittance Scheme (LRS), Parikh said the firm’s global opportunity is already operational. “We just received our approvals last week for our global international passive funds,” he said, referring to products tracking the S&P 500 and the NASDAQ 100. These funds will carry a lower entry point of $5,000, making them accessible to a wider retail base.

Parikh added that the firm has also applied for inbound products targeted at foreigners and NRIs looking to invest in India through the GIFT route, particularly those interested in the company’s flexi-cap fund. “We have filed with the regulator, we are waiting for feedback,” he said, adding that approvals could come in the next one to two months. “Somewhere in the middle of August, we will be able to probably launch that too,” he said.

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