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PAG and Edelweiss Group on Thursday announced PAG’s strategic investment of about ₹2,200 crore for a 51 per cent stake sale in Edelweiss Wealth Management.
“This partnership will result in unlocking value for shareholders and accelerating business growth, powered by PAG’s capital, business expertise and global experience,” said Edelweiss in a statement, adding that it is subject to regulatory approvals.
The transaction is expected to close in the next four to six month, following which EWM will be demerged and listed thereafter in due course
PAG is a leading investor in the region’s fast-growing economies and is keen on the Indian market, where it expects to invest $1 billion in the next two to three years. Edelweiss Wealth Management is the second largest non-bank wealth management business in India.
PAG will become a majority owner of the Edelweiss Wealth Management platform (EWM) of Edelweiss Global Investment Advisors (which also houses Edelweiss Asset Management, India’s largest alternatives and asset reconstruction platform, which is not part of the investment), it further said.
“The time is right for them to operate and grow independently. The PAG transaction will give them a great partner, which will provide them the impetus to expand scope even further,” said Rashesh Shah, Chairman and CEO, Edelweiss Financial Services.
“We are also guided by the board to seek investment partners in Edelweiss Asset Management (EAM) and GI businesses, and EAM will also be demerged and listed thereafter,” he further said.
Meanwhile, Edelweiss Financial Services registered a consolidated net loss of Rs 245.08 crore in the first quarter of the fiscal as against a net profit of Rs 132.02 crore a year ago.
Its total income also declined to ₹1,919.68 crore in the quarter ended June 30 from ₹2,581.96 crore a year ago.
“Well capitalised businesses with strong capital adequacy levels both at consolidated level and key operating entity levels,” it said in another statement, adding that it has liquidity of ₹5,700 crore as on August 12.
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