Stocks

Edelweiss Financial Services rises

Reuters | Updated on March 06, 2019 Published on March 06, 2019

Canada's CDPQ to invest $255 mn in Edelweiss arm

Shares of Edelweiss Financial Services Ltd jump as much as 12 per cent, their biggest intraday per cent gain since July 10, 2017. Edelweiss Group said on Tuesday, Canadian private equity investor CDPQ Private Equity Asia will invest over Rs 18 billion ($255.08 mln) in ECL Finance Limited, Edelweiss' non-banking financial company (NBFC) arm.

Morgan Stanley says the equity infusion, prima facie, should be positive for the stock as it should build investor confidence in addition to strengthening the balance sheet. Citi says deal is positive for capital adequacy but might not immediately help liquidity as approvals and deal consummation may take time

Citi maintains “buy” with PT of Rs 205, while MS keeps “overweight” rating on the stock with PT of Rs 205. More than 4.7 million shares change hands, compared with 30-day average volume of around 2.5 million shares.

The shares of Edelweiss Financial Services is trading at Rs 164.45, higher by 7.57 per cent.

Published on March 06, 2019
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