Edelweiss sells 4.4% stake in IPO-bound EAAA for Rs 375 crore

Edelweiss offloads 4.4% stake EAAA

Edelweiss Financial Services on Monday said it has completed the sale of 4.4 percent of common equity in its arm EAAA India Alternatives for Rs 375 crore.

The allocation has been made to key Limited Partners and select individual investors, Edelweiss Financial Services said in a filing to stock exchanges.

"While the initial intent was to place around 4 percent, demand significantly exceeded this and we chose to restrict the placement to 4.4 percent," the company said.

The move comes as EAAA prepares for its stock market debut.

EAAA, which filed preliminary papers with markets watchdog Sebi in January to raise Rs 1,500 crore through an initial public offering (IPO), is awaiting the regulatory nod.

The proposed issue will be entirely an offer-for-sale (OFS) by Edelweiss Group, according to the draft red herring prospectus (DRHP). As a result, the company will not receive any proceeds from the IPO, with the entire amount going to the selling shareholder.

Explaining the rationale for listing, Edelweiss said as a listed entity, EAAA will be better positioned to pursue growth and further strengthen its institutional character.

"We believe that listing platforms like EAAA will help institutionalise the alternatives segment, enhance transparency, and broaden access to capital for differentiated investment strategies," it added.

Incorporated in 2008, EAAA India Alternatives is among India's leading alternatives platforms, with over 15 years of experience in managing long-term, patient capital.

EAAA has assets under management (AUM) of Rs 68,175 crore and fee-paying assets under management at Rs 41,920 crore.