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Edelweiss Wealth Management (EWM), a leading non-bank wealth management firm, will list its shares in stock exchanges by December or latest by January 2023, its Managing Director and CEO Ashish Kehair, told BusinessLine .
The listing will happen through demerger of EWM from EWM holding company (Edelweiss Securities, which was a subsidiary of Edelweiss Financial Services).
“We are looking at demerger route throughlisted company (Edelweiss Financial Services).
Since it is coming out of listed company, the demerged business will get automatically listed”, kehair said.
To unlock value
The demerger is being undertaken to unlock value for shareholders. He said that the proposed demerger is “work in progress” and regulatory and stock-exchange related clearances are expected by the year-end.
“We expect the hive-off to be done by December. There are two stages — first gets over in April and the second stage starts immediately,” he said.
Growth aspirations
EWM, which operates across client segments from affluent to ultra high net worth, is eyeing 22-25 per cent CAGR in client assets over 4-5 year period, Kehair said. As on date, EWM has client assets of about ₹2 lakh crore, he added.
Currently, EWM has 2,500-3,000 HNI families and 8 lakh ‘affluent’ clients. “We hope to effectively grow our overall client base by 30-40 per cent every year. We have a strong multi-product digital offering for our clients. We will not go mass-retail. We think banks are well positioned to be in that area (mass-retail)”, Kehair said.
Open architecture firm
In the next six months, EWM plans to launch different strategies in alternative asset management including venture debt fund and also a long-only fund even while remaining to be an open architecture firm. “In this business, you have to remain open architecture. Otherwise, we will become irrelevant for the client. In the equity long-only product, we are yet to firm up whether it should be a PMS or an AIF. Maybe we will have both,” he said.
EWM is also open to inorganic expansion to grow its business in the coming years, he added. This firm, which operates in wealth, asset management and capital market space, aspires to significantly grow its asset management pie from ₹3,500 crore now to ₹50,000-60,000 crore in the next four years, Kehair added.
Shares of Edelweiss Financial closed one per cent higher at ₹55.55 on the BSE on Monday.
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