Edelweiss Financial To Raise Funds Via Minority Stake Sale In Subsidiary
This minority stake sale will enable debt reduction and establish the market value of the business, it says.
Edelweiss Financial Services Ltd. is set to raise funds through a stake sale of 10–20% in its wholly-ownedsubsidiary, Edelweiss Alternative Asset Management.
It plans to raise funds to the tune of Rs 1,500–Rs 2,000 crore and the process is expected to be completed in four to five months, according to an exchange filing on Monday. "This minority stake sale will enable debt reduction and establish the market value of the business."
The company has communicated about these plans in its annual general meeting.
In October, EAAA raised about Rs 8,000 crore for its third special-situation fund as well. Its current assets under management stand at Rs 50,000 crore as of Sept. 30.
Edelweiss Financial also expressed its disappointment with the Securities Appellate Tribunal's order that was received by Nuvama.
Penalising a professional clearing member for a "broker's misdeeds is, in our view unjust, potentially jeopardising industry norms and impeding the growth of PCMs", it said.
Edelweiss Financial said Nuvama would explore all legal options that are available, including appealing to the Supreme Court.
