Shares of Mumbai-based Edelweiss Financial Services Ltd rose over 3% on November 25 after a report said the financial services group is likely to hire Nomura to help find a buyer for a minority stake in its mutual fund business.
Edelweiss may seek a valuation of $700 million to $800 million for the entire mutual fund business, Bloomberg reported citing sources. The report said that Edelweiss is exploring a sale of a 25% to 35% stake in the unit.
“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 Mutual Fund, said in response to a query from Bloomberg News.
At 10:30 am on November 25, Edelweiss' shares were trading 3.2% higher at Rs 109 apiece. The stock's market capitalisation is nearly Rs 10,000 crore. Its 52-week low is Rs 59.41 and 52-week high is Rs 145.53.
Edelweiss offers a wide range of financial services including loans for individuals and companies, asset management and insurance, according to its website. 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.
In 2016, it acquired the onshore mutual fund schemes of JPMorgan Chase & Co.’s asset management arm in India.
With inputs from Bloomberg
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