Edelweiss Increases Stake In Edelweiss Wealth Management To 44.16%

Diversified financial group Edelweiss on Monday said it has increased its stake in its associate company -- Edelweiss Wealth Management (EWM) to 44.16 per cent.

PAG, a leading Asia-focused investment group, continues to be the majority shareholder in EWM with 55.84 per cent stake.

"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 nearly 5 per cent. Exercising that option, the group has now acquired an additional 5.28 per cent stake, taking its stake in EWM from 38.88 per cent to 44.16 per cent," it said in release.

EWM services about 750,000 affluent & HNIs and about 2,600 of India's wealthiest families. It manages Rs 1.8 trillion of customer assets.

Edelweiss Wealth Management has reported a strong performance this fiscal, with an 18 per cent growth in revenue and 69 per cent growth in profit after tax on a quarter-on-quarter basis, 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," Rashesh Shah, Chairman, Edelweiss said.

The company said India's Rs 300 trillion wealth management business is expected to hit Rs 540 trillion over the next five years.

"All our businesses are well-capitalised and we look forward to investing in the opportunities that exist as the economy emerges out of the Coronavirus (Covid-19) pandemic. Our focus will continue to be on enhancing the value of the franchise and unlocking this value for the shareholders," he said.

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

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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