Edelweiss group increases it’s stake into wealth management business by 5.28%

It’s enhanced stake now stands at 44.16%.

Key points to note –

  • The stake has been bought from PAG – world’s largest Asia focused investment groups. PAG still continues to hold the majority at 55.84%.
  • Edelweiss has paid Rs 230 crore for this stake purchase. This is at the same valuation when PAG had picked up 61.5 percent of this business for around Rs 2,366 in August 2020. Valuation is as per the terms of the agreement, which was to lapse this month – no premium or discount was involved.
  • In first half of the current fiscal, this business has reported net revenues of Rs 636 crore and net profits of Rs 148 crore.
  • It’s Rs 1.81-lakh-crore AUM comes from 7.5 lakh + customers. Of them, 2,600 are ultra HNIs (those with under-Rs 500 crore assets) and around 100 family offices with over Rs 500 crore assets. The AUM has been growing at 30 per cent each year since 2018.
  • Domestic wealth management industry is estimated at Rs 300-lakh-crore growing at about 12% p.a.
  • Edelweiss plans to take the business public by October 2022.
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