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Edelweiss Financial Services Ltd (EFSL) has received shareholders’ approval for the proposed demerger of its Wealth Management business, paving the way for the listing of Nuvama Wealth Management Limited (NWML). The business was earlier known as Edelweiss 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 on Friday is another step in that direction.
Also read: Markets more moderately valued now, says Edelweiss MF MD
On the Scheme becoming effective, NWML will allot 1,05,28,746 equity shares of the face value of ₹10 each 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 preferred wealth management platform for affluent, HNI, and UHNI segments with Assets under Advice of ₹2.25 lakh crore and about 10.35 lakh customers as on December 2022.
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