Edelweiss Financial Services has received the National Company Law Tribunal (NCLT) approval for spinning of its wealth management business and listing it as Nuvama Wealth Management.

In 2020, PAG had invested in the Wealth Management business of Edelweiss and the company announced the demerger and subsequent listing of its wealth management business. The company’s focus has always been on long-term value creation and the demerger is aimed at providing the shareholders with an opportunity to directly participate in Nuvama’s growth journey in addition to EFSL’s journey. The approval of the equity shareholders received today is another step in that direction.

In February, shareholders of Edelweiss had approved the proposal.

As per the scheme of the arrangement, NWML will allot 1,05,28,746 equity shares to the shareholders of EFSL (as on the record date) on a proportionate basis as a consideration for demerger.

After listing, Edelweiss would continue to hold 14 per cent in NWML and the shareholders of EFSL would hold 30 per cent of the paid-share capital. PAG would hold 56 per cent in NWML.

Nuvama is a wealth management platform for affluent, HNI, and UHNI segments with assets under administration of ₹2,25 lakh crore and 10.35 lakh customers as on December 2022.