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Last Updated : Nov 13, 2019 12:08 PM IST | Source:

Edelweiss Financial share price locked at upper circuit on capital infusion talks

The company's consolidated Q2FY20 net profit fell 81 percent at Rs 51 crore against Rs 272 crore in Q2FY19.

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Shares of Edelweiss Financial Services were locked at 5 percent upper circuit on November 13 after a private equity firm said it is going to invest Rs 525 crore in the company's investment advisory business.

Sanaka Capital along with co-investors will be investing up to $75 million (Rs 525 crore) into Edelweiss Global Investment Advisors (EGIA), the Group’s Investment Advisory business.

The proposed investment in the business is subject to regulatory approvals.


There were pending buy orders of 22,890 shares, with no sellers available.

Sanaka Growth SPV I Ltd (part of Sanaka Capital) has committed to invest approximately $44 million (Rs 308 crore) in EGIA, while talks are on for a further investment of approximately $31 million (Rs 217 crore) in the business.

The company's consolidated Q2FY20 net profit fell 81 percent at Rs 51 crore against Rs 272 crore in Q2FY19.

Total revenue was down 10 percent at Rs 2,405 crore versus Rs 2,676 crore, YoY.

“We are pleased to partner with Shankar Narayanan of Sanaka. He led and was involved in Carlyle’s investments in the Edelweiss Group for several years. We are delighted that his confidence has now been reaffirmed through Sanaka," said Rashesh Shah, Chairman and CEO of Edelweiss Group.

Rakesh Radheshyam Jhunjhunwala holds 1,00,00,000 equity shares (1.07 percent) in the company, as per BSE shareholding data as on September 2019.

At 1136 hrs, Edelweiss Financial Services was quoting at Rs 122.10, up Rs 5.80 on the BSE.

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First Published on Nov 13, 2019 12:08 pm
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