Avandus Fund from promoters Rs. 140 crore to buy PPFAS stake

Private equity investor Avandus Future Leaders Fund III (FLF), part of the Avandus Group, has raised around Rs. Bought shares of Parag Parikh Financial Advisory Services (PPFAS) worth Rs 140 crore.

Avendus’ investment in PPFAS was made through a secondary transaction to acquire a mere 1% stake in India’s largest mutual fund house. He bought the stake from PPFAS chairman and chief executive officer Neil Parag Parikh and the company’s head of wealth management, Khushbu Joshi.

Along with this, Avandus’ third fund raised its target of Rs. 1,800 crore corpus has deposited about 30% and expects to make five to six additional investments in the next year.

Also Read: Parag Parikh Flexi Cap Fund’s June move: ITC, TCS in key buys; Dr. Reddy’s, Maruti’s stake cut

All about PPFAS

Established in 1992, Parag Parikh Financial Advisory Services (PPFAS) claims to be one of India’s earliest SEBI-registered Portfolio Management Service (PMS) providers. Its assets under management (AUM) as on March 31, 2026 stood at Rs. 1.48 lakh crore, which was Rs. 1.06 lakh crore up 39% year-on-year (YoY).

Its Parag Parikh Flexi Cap Fund is the largest active flexi cap fund by AUM, which in June reached Rs. 1.10 lakh crore in assets under management.

What Avandus management said

Ritesh Chandra, Managing Director, Avendus Future Leaders Fund, said, “Parag Parikh has built one of India’s most trusted and differentiated asset management franchises backed by a disciplined investment philosophy and governance. He added that as financial savings in India continue to shift towards mutual funds and long-term investments, the company is well positioned to benefit from continued industry tailwinds.”

“For Avandus, the investment represents an opportunity to partner with a scaled, high-quality, founder-led financial services franchise with a sustainable competitive moot and consistent compounding potential,” Chandra further told The Economic Times.

What PPFAS management said
Neil Parag Parikh, Chairman and CEO of PPFAS and one of the sale promoters welcomed Avandus FLF as a firm partner. “Over the years, we have built a trusted brand and strong track record, coupled with disciplined investing and a client-centric, long-term approach to wealth creation. As we have grown with businesses spanning Mutual Funds, Wealth Management, Gift City Funds, Private Equity and an important partnership in the National Pension System (NPS). Exemption

“We believe Avendus FLF shares our long-term vision and values, and this partnership will further strengthen our platform, enhance our capabilities and enable us to deliver greater value to our customers, investors and other stakeholders,” said Neil Parag Parikh, Chairman and CEO, PPFAS,” he added.

Avendus Future Leaders Fund has also backed several other notable companies including Lenskart, Segility, SBI General Insurance, Licious and others. Unlisted shares of PPFAS rose nearly 11% in six months to Rs. Around 18,250 have been traded.

The stock market is recovering from sharp lows recorded earlier this year, as Iran and US tensions have eased and oil prices have steadied. Equity mutual fund inflows in May were Rs. 22,907 crore in June, up nearly 26% month-on-month to Rs. 28,973 crores.

Also Read: These 9 Equity Mutual Fund Categories See Inflows In June; Midcap funds are at the top

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