18 Dec 2023 , 03:01 PM
Edelweiss Financial Services initiates the sale of equity in its alternative asset management unit, aiming to raise Rs 1,500 crore to Rs 2,000 crore ($180.69 million-$240.93 million) by divesting a 10%-20% stake.
The stake sale in Edelweiss Alternative Asset Management (EAAM) has garnered significant interest, with the process expected to conclude in four to five months, according to a company statement.
The move aims to reduce Edelweiss Financial Services’ debt and enhance its market value, addressing a net debt of Rs 15,220 crore as of September-end.
EAAM’s assets under management reached Rs 500 crore as of September-end, showcasing a compound annual growth rate of 31% since fiscal year 2017, as per Edelweiss.
Additionally, Edelweiss reported that the Indian securities appeal court dismissed an appeal from its former unit, Nuvama Clearing Services, in a case related to the handling of client securities as a clearing agent.
Nuvama Clearing has already set aside 236 with the clearing corporation of the stock exchange concerning the case and will explore legal options, as stated by Edelweiss.
Despite Edelweiss Financial Services shares experiencing a 121% rise this year, they initially fell by 8.8% in early trade, later recovering to trade 1.8% lower at Rs 74.90.
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