Nuvama Wealth Management shares will be in focus on October 9, after the securities regulator Securities and Exchange Board of India (SEBI) issued an administrative warning. The warning was issued in connection with the inspection carried out by SEBI on Nuvama's merchant banking activities.
The observation, received on October 7, 2024, is regarding the initial public offerings (IPO), wherein Nuvama Wealth Management acted as the lead manager.
The wealth managment player clarified that the warning will have no material impact on the running of the company. "There is no material impact on the financials, operations, or other activities of the Company," said Nuvama.
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As much as 6.2 percent equity of Nuvama Wealth Management, making up 22.10 lakh shares were sold through block deals on September 27 with Edel Finance Company and Ecap Equities being the likely sellers in the transaction.
While Moneycontrol could not immediately ascertain the parties involved in the transaction, CNBC-TV18 reported that Edel Finance Company and Ecap Equities were eyeing to sell a cumulative 6.4 percent stake in Nuvama Wealth Management via block deals worth around Rs 1,464.8 crore.
As of the end of the June quarter, Ecap Equities held an 8.44 percent stake, while Edel Finance owned 5.18 percent stake in Nuvama Wealth Management.
Nuvama Wealth Management shares have galloped 180 percent over the past 12 months, significantly outperforming the headline index Nifty 50, which has risen around 27 percent during the same time period.
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