Edelweiss subsidiary Edelweiss Alternative Asset Advisors (EAAA) has filed a draft red herring prospectus for an initial public offering (IPO) of up to Rs 1,500 crore, subject to approval and market conditions, the company informed stock exchanges on December 5.
"...we would like to inform you that EAAA India Alternatives Limited (“EAAA”), a wholly owned subsidiary of the Company, has informed the Company that it has filed a draft red herring prospectus dated December 5, 2024 with the Securities and Exchange Board of India, BSE Limited and National Stock Exchange of India Limited in connection with a proposed initial public offering of its equity shares of the face value of Rs. 5 each," an Edelweiss statement said.
The public issue is an offer for sale for up to Rs 1,500 crore and has been undertaken by Edelweiss Securities, a wholly-owned subsidiary of the company. The IPO is subject to approvals and market conditions, and Edelweiss expects the EAAA India IPO by June next year if all approvals come through as per procedure.
Edelweiss Securities (ESIPL) is the holding company and one of the promoters of the EAAA India.
Edelweiss has in the past hinted that the public issue in the asset management business could
be used to sell some stake, and use the capital raised to reduce debt. Over the next 18 months, Edelweiss Group will also consider a stake sale in the mutual fund business as well.
Shares of Edelweiss Financial are higher by 17% in last one month, witnessing a sharp upmove in recent weeks. 10% of the proposed issue has been reserved for Edelweiss Financial's shareholders, and investors can buy one share of the company to be eligible for shareholder quota.
EAAA is a major player in India's private capital segment, and manages assets worth over Rs 56,000 crore as of June 2024. The company clocked a healthy September quarter with 20% growth in ARR, AUM and a 70% growth in PAT, CAGR over four years.
"...the foundation has been laid. Now we are getting ready to significantly grow profit, and we think we should be able to maintain a ~20 percent growth profit CAGR for this business over the next five years, and it can also bring a lot of free cash flow because now the funds are of a decent size, the profit has grown," Rashesh Shah had informed investors during the last earnings call.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
