Edelweiss Group increases its stake in its Wealth Management Business to ~ 44%

Edelweiss, India's leading diversified financial services group, today announced that it has increased its stake in its associate company - Edelweiss Wealth Management (EWM) to 44.16%. As a part of the agreement outlined last year, when PAG acquired a majority stake in the business, Edelweiss had the option to increase its stake by ~5%. Exercising that option, the Group has now acquired additional 5.28% stake, taking its stake in EWM from 38.88% to 44.16%. PAG-the world's largest Asia-focused investment groups continues to be the majority shareholder in EWM with 55.84 % stake.

EWM is one of India's leading wealth management firms servicing ~750,000 Affluent & HNIs and ~2,600 of India's wealthiest families. It manages INR 1.8 trillion of customer assets. Consistently outpacing the market, it has reported a strong performance this fiscal too with a 18% growth in Revenue and 69% growth in PAT QoQ. The INR 300 trillion Indian wealth management industry has been expanding rapidly. With a strong annual growth trajectory of 12.5%, it is expected to reach INR 540 trillion in the next five years, presenting a significantly large opportunity for EWM.

Speaking on the development, Rashesh Shah, Chairman, Edelweiss said, "With a significant growth runway visible for Wealth Management in India, we are excited to invest in this business which has a proven track record and fuel the expansion of its market dominance. All our businesses are well-capitalised and we look forward to investing in the opportunities that exist as the economy emerges out of the pandemic. Our focus will continue to be on enhancing the value of the franchise and unlocking this value for the shareholders."

The demerger process for Edelweiss Wealth Management is underway and progressing as planned in a phase-wise manner.

Shares of Edelweiss Financial Services Limited was last trading in BSE at Rs. 75.60 as compared to the previous close of Rs. 76.45. The total number of shares traded during the day was 62082 in over 1213 trades.

The stock hit an intraday high of Rs. 77.50 and intraday low of 74.60. The net turnover during the day was Rs. 4678725.00.

Source : Equity Bulls

Keywords

EdelweissFinancialServices INE532F01054 StakeIncrease EWM EdelweissWealthManagement