Edelweiss Financial Services will sell stake in the unit for up to Rs 2,000 cr

Edelweiss Financial Services on Monday said it has started selling shares in its alternative asset management unit and plans to raise about Rs 1,500 crore to Rs 2,000 crore ($180.69 million – $240.93 million) through a 10 stake %-20% to be disposed of.

The company is receiving significant interest for the sale of its stake in Edelweiss Alternative Asset Management (EAAM), and the process is likely to be completed within four to five months, Edelweiss said in a statement.

The move to sell the stake will reduce the company's debt and improve its market value, the company said.

Edelweiss Financial Services' net debt stood at Rs 15,220 crore at the end of September, the company said in an investor filing in November.

EAAM's current assets under management stood at Rs 500 crore at the end of September and have grown at a compound annual growth rate of 31% since FY17, Edelweiss said.

In addition, Edelweiss said India's Securities Appellate Court last week dismissed an appeal filed by its former unit, Nuvama Clearing Services, regarding a case over the handling of client securities as a clearing agent.

Nuvama Clearing has already reserved 236 with the exchange's clearing company in connection with the case and will also explore legal options, Edelweiss said.

Shares of Edelweiss Financial Services, which are up 121% so far this year, fell as much as 8.8% in early trading before paring some losses. They were last trading 1.8% lower at Rs 74.90.

First print: December 18, 2023 | 1:47 p.m IST