Moneycontrol
Last Updated : Dec 05, 2018 03:29 PM IST | Source: Moneycontrol.com

Edelweiss Financial up 5% for 2nd straight day on AMC biz stake sale report

The sale could happen through a combination of primary capital infusion or a secondary stake sale or a combination of both, the report said.

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Edelweiss Financial Services rallied 5 percent for the second consecutive session on Wednesday after a media report indicated that global private equity firms are looking stake buy in company's wealth and asset management business.

Blackstone, TPG, KKR, Carlyle, Apax Partners, among others are in talks to acquire about 20-25 percent stake in Edelweiss' Global Wealth and Asset Management (GWAM) business, The Economic Times had said on Tuesday.

Edelweiss' GWAM business comprises wealth and asset management, asset reconstruction and credit funds businesses and is valued at Rs 12,000-15,000 crore. A deal is expected to be reached in January.

The sale could happen through a combination of primary capital infusion or a secondary stake sale or a combination of both, the report said.

Edelweiss Financial Services, the main holding company, has three main businesses: credit, franchise and advisory and insurance. As of now, its insurance and credit companies are separate but if the deal comes through, a new entity may emerge, in which Edelweiss may hold a majority stake, the report said.

At 15:18 hours IST, the stock was quoting at Rs 193.40, up Rs 6.70, or 3.59 percent on the BSE.
First Published on Dec 5, 2018 03:29 pm
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