Edelweiss Financial Services Ltd. has hired Nomura Holdings Inc. to help find a buyer for a minority stake in its mutual fund business, according to people familiar with the matter.
The Mumbai-based financial services group is exploring a sale of a 25% to 35% stake in the unit, the people said, asking not to be identified because the deliberations are private. Edelweiss may seek a valuation of $700 million to $800 million for the entire mutual fund business, the people said.
Potential suitors include other global asset managers, the people said. Considerations are ongoing, details such as the size of the stake sale and valuation could change, and Edelweiss could still decide against pursuing a deal, they said.
“To further strengthen our international business, we are open to exploring opportunities with minority strategic partners, ensuring there is a strong alignment in values and vision,” Radhika Gupta, a managing director and chief executive officer of Edelweiss Mutal Fund, said in response to a query from Bloomberg News.
A representative for Nomura declined to comment.
Edelweiss offers a wide range of financial services including loans for individuals and companies, asset management and insurance, according to its website. Its shares have gained 36% in Mumbai this year, valuing the group at about $1.2 billion.
Some elements of the potential Edelweiss stake sale were reported earlier by local publications including Mint and The Morning Context.
Edelweiss’s mutual funds business had around Rs 1.42 lakh crore ($16.8 billion) in assets under management as of the end of October. It has grown both organically and via mergers and acquisitions. In 2016, it acquired the onshore mutual fund schemes of JPMorgan Chase & Co.’s asset management arm in India.
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