According to sources, the firm is looking to sell a 25-35% stake in its mutual fund arm and is seeking a valuation of $600 million.
“To further strengthen our international business, we are open to exploring opportunities with minority strategic partners, ensuring there is a strong alignment in values and vision,” says Radhika Gupta, MD, Edelweiss MF.
It was also anticipated that the company had appointed Nomura as its advisor for the transaction, for which the stock exchanges had sought clarification from the company.
However, the company, via an exchange filing clarified that it has disclosed all the relevant details to the exchanges and will continue to do so.
“The Company has subsidiaries which are engaged in various businesses such as Insurance, Alternative Asset Management, Mutual Fund, etc. The Company has been exploring various alternatives for enhancing shareholders’ value, either by way of a stake sale in subsidiaries or listing them on the stock exchanges,” said the company in its filing.To this intent, the company in 2023, listed the wealth management business on the stock exchanges. We have in the past mentioned the value-unlocking theme at Edelweiss at various forums and earning calls. In this regard, the company is required to appoint advisors from time to time to advise on the manner and timing of value unlocking, the company added.The shares of Edelweiss Financial Services closed 1.33% higher at Rs 107.05 on the BSE on Monday.
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