The company has filed the application for listing with the stock exchanges, and is currently in the process of obtaining the required approvals and clearances.
“We anticipate the listing of NWML shares to take place between the end of August and mid-September 2023, subject to regulatory approvals,” Kehair said in an interview with ETMarkets. Edited excerpts:
What’s the status of the demerger process as Edelweiss already has NCLT approval?
The demerger process was successfully completed following the approval from National Company Law Tribunal (NCLT) on April 27, 2023, which came into effect on May 18, 2023. Shareholders of Edelweiss Financial Services have received their allotted shares of Nuvama Wealth Management, making them shareholders of Nuvama.
We have filed the listing applications with the stock exchanges and SEBI which are currently under process.
By when can we expect the listing of Nuvama Wealth Management?
We have filed listing applications with the stock exchanges and are currently in the process of obtaining the required approvals and clearances.
We anticipate the listing of NWML shares to take place between the end of August 2023 and mid-September 2023, subject to regulatory approvals.
Post demerger, how will the ownership structure look like?
Post demerger, PAG, along with its affiliate, continues to hold a majority stake of 56.2%, while Edelweiss through its subsidiaries, has retained 13.74% stake. The remaining 30% is held by the shareholders of Edelweiss Financial Services as on the record date.
You had earlier said that Nuvama plans to triple both its client assets and client base by 2028. How do you plan to do this? What’s the game plan?
We have outlined a few key priorities to drive our growth strategy: We aim to capitalize on the expanding wealth market in India by extending our presence beyond 100 cities. Over the next 5 years, our goal is to increase our team of wealth relationship managers to 2,000 professionals. Secondly, we intend to foster growth in the alternative asset management sector through continuous product innovation.
By diversifying our investor base and expanding distribution channels, we aim to strengthen our position in this dynamic market segment.
We have one of the most comprehensive wealth management offerings in the market, covering a large portion of the wealth pyramid.
In addition, we offer a wide range of solutions for clients ranging from investments, asset management, lending and investment banking.
By focusing on these strategic priorities and leveraging our comprehensive platform, we aim to sustain our growth trajectory and reinforce our position as a leading player in the wealth management space.
Can you share business-wise AUM and the growth trends in each vertical?
Currently, our overall client assets stand at approximately Rs 2.5 trillion. In Wealth Management vertical, we manage client assets approximately worth Rs 2 trillion. This significant portion of our assets is a testament to our strong presence in the wealth management sector. Our goal is to grow these client assets to 2 to 2.5 times their current value in 5 years.
We are confident that our focus on providing excellent client services and staying attuned to market dynamics will drive this growth.
Furthermore, in the Asset Management vertical, we handle AUM of around Rs 6,000 crore and we aspire to achieve significant expansion. We plan to grow this AUM by 6-8 times its current value in 5 years.
In addition, we also manage approximately Rs 50,000 crore in AUM in Clearing and Custody.
What would be the top priorities for Nuvama in the initial years?
Our key priorities going forward are centred on driving growth and operational excellence in our business.
Firstly, we aim to expand our wealth management business by strengthening our sales efforts and extending our geographic presence.
Secondly, in the asset management vertical, our focus is on scaling up by introducing new strategies and products.
Lastly, improving our operations to enhance our overall efficiency. We are determined to deliver improvements in our cost-to-income ratio, optimizing our resources, leveraging technology and streamlining processes.
Which business vertical are you most positive on in terms of growth?
We are highly optimistic about the growth prospects of our Wealth and Asset Management verticals, which are anticipated to be the primary drivers of our earnings.
Considering the favorable sectorial tailwinds, both Wealth and Asset Management present significant opportunities for growth in India.
Leveraging our scale and past successes, we are well-positioned to capitalize on these macro trends and benefit from the expanding market potential.
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