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Rashesh Shah outlines plans to bring Edelweiss Financial’s debt below ₹1,000 crore in a year
Rashesh Shah, Chairman of Edelweiss Group, highlighted the strong growth prospects for the wealth and asset management sectors in India during a discussion on the group’s divestment in Nuvama Wealth.
Edelweiss Financial Services aims to reduce its debt to under ₹1,000 crore within the next year, says Edelweiss Group Chairman Rashesh Shah.
The debt reduction will be funded through a stake sale in its mutual fund business and the IPO of Edelweiss Alternative Asset Advisors (EAAA), together expected to raise ₹3,000 to ₹4,000 crore.
Shah said the company has appointed investment bankers who are engaging with potential strategic partners.
“We plan to sell around 30-35% stake (in mutual fund business) to a strategic partner, not as a financial transaction but with a focus on growth. We expect this stake sale to generate ₹1,500 to ₹2,000 crore,” he said.
The IPO of EAAA is projected to bring in another ₹1,500 to ₹2,000 crore.
A block deal in Nuvama Wealth saw 8.4% of its stake, valued at ₹2,100 crore, change hands with Edelweiss Finance and Ecap Equities were the sellers.
Edelweiss Financial and Ecap Equities offloaded 8.4% stake in Nuvama worth ₹2,100 crore.
A large part of the proceeds from this divestment will be utilised for debt repayment, and rest for reinvestment in other business opportunities.
Shah said he continues to hold some shares in Nuvama in personal capacity, which he received during the company’s demerger process.
Shah highlighted the strong growth prospects for the wealth and asset management sectors and stated that India’s financial ecosystem is evolving from being bank-centric to incorporating capital markets.
The debt reduction will be funded through a stake sale in its mutual fund business and the IPO of Edelweiss Alternative Asset Advisors (EAAA), together expected to raise ₹3,000 to ₹4,000 crore.
Shah said the company has appointed investment bankers who are engaging with potential strategic partners.
“We plan to sell around 30-35% stake (in mutual fund business) to a strategic partner, not as a financial transaction but with a focus on growth. We expect this stake sale to generate ₹1,500 to ₹2,000 crore,” he said.
The IPO of EAAA is projected to bring in another ₹1,500 to ₹2,000 crore.
A block deal in Nuvama Wealth saw 8.4% of its stake, valued at ₹2,100 crore, change hands with Edelweiss Finance and Ecap Equities were the sellers.
Edelweiss Financial and Ecap Equities offloaded 8.4% stake in Nuvama worth ₹2,100 crore.
A large part of the proceeds from this divestment will be utilised for debt repayment, and rest for reinvestment in other business opportunities.
Shah said he continues to hold some shares in Nuvama in personal capacity, which he received during the company’s demerger process.
Shah highlighted the strong growth prospects for the wealth and asset management sectors and stated that India’s financial ecosystem is evolving from being bank-centric to incorporating capital markets.
First Published: Dec 12, 2024 1:31 PM IST
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