Edelweiss Financial stock rises 3% as PAG to buy majority stake in wealth management business

© India Today Group Edelweiss Financial stock rises 3% as PAG to buy majority stake…



a close up of a keyboard: Edelweiss Financial stock rises 3% as PAG to buy majority stake in wealth management business


© India Today Group
Edelweiss Financial stock rises 3% as PAG to buy majority stake in wealth management business

Share price of Edelweiss Financial Services gained over 3% in early trade after the firm said Hong Kong-based private equity firm  Pacific Alliance Group (PAG) will buy a 51% stake in its wealth management business for Rs 2,244 crore.

Edelweiss Financial Services share rose up to 3.33% to Rs 86.50 against previous close of Rs 83.85 on BSE. The stock has risen 2.69% in the last 2 days. Edelweiss Financial share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. However, in a year, the share has lost 29% and fallen 23% since the beginning of this year.

In a month, the stock has risen 13%. Total 0.68 lakh shares changed hands amounting to turnover of Rs 57.75 on BSE. Market cap of the firm rose to Rs 7,817 crore. This is PAG’s first majority equity investment in India.

The transaction is expected to close in the next 4-6 months subject to regulatory approvals. The financial services firm plans to list demerge and list Edelweiss Wealth Management after the completion of transaction.

This is largest equity raise by Edelweiss Group till date, the firm said.

Meanwhile, the firm reported a loss of Rs 245 crore in Q1 of current fiscal against Rs 132 crore loss in corresponding period of previous fiscal. Total income fell 25% to  Rs 1919 crore in Q1 against Rs 2,581 crore in the corresponding period of previous fiscal.

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