Edelweiss Financial up 5% on report of global PE firms eyeing stake in GWAM

Edelweiss Financial Services shares were locked at 5 percent upper circuit at Rs 186.70 on Tuesday after a media report suggested that global private equity firms are in talks to acquire some stake in company’s global wealth and asset management business.

There were pending buy orders of 108,691 shares, with no sellers available on the BSE, at 15:18 hours IST.

Blackstone, TPG, KKR, Carlyle, Apax Partners, among others are in talks to acquire about 20-25 percent stake in Edelweiss’ Global Wealth and Asset Management (GWAM) business, The Economic Times said.

Edelweiss’ GWAM business comprises wealth and asset management, asset reconstruction and credit funds businesses and is valued at Rs 12,000-15,000 crore. A deal is expected to be reached in January.

The sale could happen through a combination of primary capital infusion or a secondary stake sale or a combination of both, the report said.

Edelweiss Financial Services, the main holding company, has three main businesses: credit, franchise and advisory and insurance. As of now, its insurance and credit companies are separate but if the deal comes through, a new entity may emerge, in which Edelweiss may hold a majority stake, the report said.

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