WestBridge Capital to acquire 15% stake in Edelweiss Asset Management for Rs. 450 crores

Edelweiss Financial Services Limited (EFSL) announces that WestBridge Capital is acquiring a 15% stake for a consideration of ₹450 crores in Edelweiss Asset Management Limited (the Asset Manager of Edelweiss Mutual Fund).

Edelweiss Mutual Fund (Edelweiss MF) is one of the key businesses for EFSL and currently manages ₹72,600 crores of Equity AUM which has grown by 53% over the last 5 years. Edelweiss MF had a Profit after tax of ₹53 crores for FY25. The current transaction values the business at 57x P/E which aligns with industry benchmarks of 30x to 60x. This transaction is beneficial for all stakeholders and comes at an opportune time for Edelweiss MF as it now shifts into next phase of growth. For EFSL, this transaction underscores the objective of value creation and value unlock journey in the MF business; for Edelweiss MF, it strengthens the growth trajectory and the path to being an institutionalised independent business; and for WestBridge, it marks a strategic entry into a high-growth, well-governed MF business with proven leadership and scale potential.

Edelweiss MF, one of India's fastest-growing AMCs, has reached a total AUM of ₹1,52,200 crore as of June 30, 2025, reflecting a 44% CAGR over the last five years. Edelweiss MF reported PAT of ₹28 crores for the first quarter of FY26 - demonstrating a strong momentum and improved operating leverage. Over a 10-year period, Edelweiss MF has moved from the 36th to the 13th position in the industry - a clear indicator of its transformation into a credible, scaled, and competitive player in the Indian mutual fund landscape.

WestBridge Capital is a global investment firm with over $7 billion in assets under management. For over two decades, WestBridge has partnered with transformative entrepreneurs at every stage across both private and public markets. It has earned a reputation for scaling businesses by actively engaging through board participation, governance support and hands-on partnerships that can span decades, by virtue of its long-term investment approach.

Rashesh Shah, Chairman & MD, EFSL, said: "Welcoming WestBridge Capital as a strategic partner is a timely step in the value-creation journey at Edelweiss MF. We have built a robust, innovation-led mutual fund franchise with strong equity momentum. This transaction reflects the confidence in the long-term potential of our Mutual Fund business. It initiates the value unlock for EFSL, strengthens the growth path of Edelweiss MF, and brings in a seasoned longterm partner."

Radhika Gupta, MD & CEO, Edelweiss MF, said: "Edelweiss MF has scaled rapidly through focused execution - consistent fund performance, product innovation, and widening distribution strength. We are delighted to partner with WestBridge Capital - a likeminded and long-term partner - whose strategic insights and ecosystem will accelerate our next phase of growth. The mutual fund opportunity in India is just taking off and we are confident that we can build Edelweiss MF into one of India's most admired asset managers."

Deepak Ramineedi, Partner at WestBridge Capital, said: "We are extremely pleased to partner with Edelweiss Mutual Fund at this exciting stage of its growth journey. Under Radhika's leadership, Edelweiss MF has demonstrated excellent execution with a sharp focus on innovation. We believe financialization of savings is a massive industry tailwind and strongly believe Edelweiss MF is very well placed to benefit from the same. We look forward to supporting the team in scaling the business further."

Closing note: The transaction is subject to approvals of the Securities and Exchange Board of India, the Competition Commission of India and other customary approvals. Nomura Financial Advisory and Securities (India) Private Limited acted as the exclusive financial advisor to EFSL. Khaitan & Co. acted as legal advisors to EFSL and Edelweiss MF, and Trilegal acted as legal advisor to WestBridge Capital. EFSL will provide further updates in due course.

Shares of Edelweiss Financial Services Limited was last trading in BSE at Rs. 93.70 as compared to the previous close of Rs. 96.80. The total number of shares traded during the day was 424974 in over 2072 trades.

The stock hit an intraday high of Rs. 98.90 and intraday low of 93.50. The net turnover during the day was Rs. 40765628.00.

Source : Equity Bulls

Keywords

EdelweissFinancialServices INE532F01054 EdelweissAssetManagement EdelweissMutualFund StakeSale WestBridgeCapital