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Edelweiss Financial gains after subsidiary gets FIPB approval for raising foreign holding

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Capital Market
Last Updated : Aug 27 2015 | 12:02 AM IST

Edelweiss Financial Services gained 2.77% to Rs 55.65 at 12:35 IST on BSE after its life insurance joint venture with Tokio Marine Holdings Inc, Japan received approval from the Foreign Investment Promotion Board for increasing foreign equity stake.

The company made the announcement after market hours yesterday, 25 August 2015.

Meanwhile, the BSE Sensex was down 133.24 points, or 0.51% to 25,899.14.

On BSE, so far 83,168 shares were traded in the counter, compared with an average volume of 6.84 lakh shares in the past one quarter.

The stock hit a high of Rs 56.60 and a low of Rs 55 so far during the day. The stock had hit a 52-week high of Rs 82.25 on 27 January 2015. The stock had hit a 52-week low of Rs 44.60 on 25 September 2014.

The stock had underperformed the market over the past one month till 25 August 2015, sliding 15.8% compared with 7.4% fall in the Sensex. The stock had also underperformed the market in past one quarter, declining 9.76% as against Sensex's 5.83% decline.

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The mid-cap company has an equity capital of Rs 80.87 crore. Face value per share is Re 1.

Edelweiss Tokio Life Insurance has received approval from the Foreign Investment Promotion Board for increasing foreign equity stake to 49% from 26%. Tokio Marine Holdings Inc, Japan will invest a sum not exceeding Rs 540 crore for raising its stake in Edelweiss Tokio Life Insurance to 49% from 26%. The investment will be routed through Tokio Marine & Nichido Fire Insurance Co. Edelweiss Tokio Life Insurance is the life insurance joint venture between Edelweiss Financial Services and Tokio Marine Holdings Inc, Japan.

Edelweiss Financial Services' consolidated net profit rose 16.7% to Rs 91.28 crore on 43.3% increase in total income to Rs 1158.78 crore in Q1 June 2015 over Q1 June 2014.

Edelweiss Financial Services Group offers a range of products and services spanning retail finance, debt capital markets, commodities, financial markets, asset management and life insurance.

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First Published: Aug 26 2015 | 12:26 PM IST

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