The Hindu Business Line : Edelweiss Capital plans initial public offering

Chennai June 6 Edelweiss Capital Ltd, which provides investment banking, asset management and wealth management services directly and stock and insurance broking through subsidiaries, plans to come out with a public issue.

The Founder and Managing Director of the company, Mr Rashesh Shah, could not be contacted as he is out of the country, but sources in the know confirmed the proposal for an IPO.

It is understood that the company plans to raise between Rs 400 crore and Rs 600 crore.

A formal announcement on this could be expected early next month. The IPO itself may hit the market in October or November, sources said.

Last year, Edelweiss' topline was of the order of Rs 400 crore and net profit about Rs 100 crore.

In the current year, the company expects a topline of Rs 700 crore.

In recent times, Edelweiss has emerged as one of the more active investment bankers in the country, providing a range of services including capital raising, private placements, mezzanine and convertible debt, mergers and acquisition advisory services and restructuring advisory services.

The company's most recent deal was the purchase of 26 per cent in Deccan Aviation (Air Deccan) by Kingfisher.

It was the sole book running lead manager for Orbit Corporation's public issue. Edelweiss has helped Spice Jet raise private equity investments and assisted Spectrum Power get $ 39 million funding.

It was also the sole financial advisor and joint lead manager for Prithvi Information Solutions Ltd raising $50 million by an FCCB issue.

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Edelweiss Capital plans initial public offering