Diversified financial services entity Edelweiss Group on Monday announced that it has increased its stake in its associate company – Edelweiss Wealth Management (EWM)--to 44.16 per cent.

This follows the acquisition of majority stake by PAG, where it invested about ₹2,366 crore in EWM, including primary and secondary investment

“As a part of the agreement outlined last year, when PAG acquired a majority stake in the business, Edelweiss had the option to increase its stake by about five per cent,” Edelweiss Group said in a statement.

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Exercising that option, the Group has now acquired additional 5.28 per cent stake, taking its stake in EWM from 38.88 per cent.

PAG continues to be the majority shareholder in EWM with 55.84 per cent stake. “The demerger process for Edelweiss Wealth Management is underway and progressing as planned in a phase-wise manner,” the statement further said.

Strategic investment

Edelweiss Group and PAG had in August 2020 announced the strategic investment for a 51 per cent stake sale in EWM and had sealed the partnership in March 2021.

Rashesh Shah, Chairman, Edelweiss said, “With a significant growth runway visible for wealth management in India, we are excited to invest in this business which has a proven track record and fuel the expansion of its market dominance. All our businesses are well-capitalised and we look forward to investing in the opportunities that exist as the economy emerges out of the pandemic. Our focus will continue to be on enhancing the value of the franchise and unlocking this value for the shareholders.”

EWM services boasts about 7.5 lakh affluent and high net worth individuals and about 2,600 of the country’s wealthiest families. It manages about ₹1,80,000 crore of customer assets.

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