PAG picks up 51% stake in Edelweiss Wealth Management for Rs 2,200 crore
With this deal, which also marks Asia-focussed PAG's first PE investment in India, the company will become a majority owner of Edelweiss' wealth, investment banking and capital markets businesses
August 28, 2020 / 02:26 PM IST
Private equity (PE) firm PAG on August 27 announced a strategic investment of around Rs 2,200 crore ($300 million) for a 51 percent stake in Edelweiss Wealth Management (EWM). With this deal, which also marks Asia-focussed PAG's first PE investment in India, the company will become a majority owner of Edelweiss' wealth, investment banking and capital markets businesses.
"PAG's investment in EWM is part of Edelweiss Group's stated strategy to build independently capitalised and self-sufficient businesses," the Edelweiss Group said in its official statement.
The PE firm, which is the world’s largest Asia-focused investment group, is also looking to invest $1 billion in the Indian market in the next two to three years.
The Edelweiss board approved the plan for demerger and subsequent listing of EAM on stock exchanges, the company said in a statement to the BSE.
Commenting on the deal, Weijian Shan, Chairman and CEO, PAG said, "PAG is committed to India's market as we strongly believe in the long-term growth of the economy. The investment in Edelweiss Wealth marks a milestone in PAG’s investments in the India market."
Rashesh Shah, Chairman and CEO, Edelweiss Group said, "In PAG we have found a great partner with global experience and strong capabilities. This investment endorses our core strategy of incubating businesses, building value and growing them into market leaders as they gradually move from inter-dependence to independence. We remain committed to unlocking value for businesses and shareholders alike and remain future-ready to ride the economic trajectory post COVID."