Edelweiss to sell up to 20% stake in subsidiary Edelweiss Alternative Asset Management to raise Rs 1,500-2000 crore

19 Dec 2023 , 12:10 PM

Edelweiss Financial Services revealed a proposal to sell a 10% to 20% stake in subsidiary Edelweiss Alternative Asset Management and has begun the equity monetisation process, according to a press statement.

Following this development, the company’s counter zoomed as much as 2% to an intraday high of Rs 76.80.

According to the firm, the sale would fetch Rs 1,500-2,000 crore and will take four to five months to complete.

The proceeds would be used to pay down debt and establish the market worth of the company. The action is consistent with the company’s goal of unlocking wealth for its shareholders. 

Edelweiss also voiced dissatisfaction with the recent Securities Appellate Tribunal (SAT) decision on Nuvama, previously Edelweiss Custodial Services.

The SAT denied Nuvama’s appeal, which was submitted in response to an order issued by the NSE Clearing Core Settlement Guarantee Fund Committee. The court ordered Nuvama to reinstate securities and restore shares worth Rs 450 crore to Anugrah Stock and Broking customers. The brokerage mishandled and improperly sold the customers’ securities, the court ordered.

At around 12.05 PM, Edelweiss was trading 1.66% higher at Rs 76.35, against the previous close of Rs 75.10 on NSE.

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