Edelweiss founders divest stake in Nuvama Wealth Management after demerger

Nuvama Wealth Management was listed on the BSE and NSE in September 2023, following the demerger of Edelweiss Financial Services' wealth management business

Edelweiss Financial Services Ltd founders and promoters, Rashesh Shah and Venkatchalam Ramaswamy, have sold a portion of their stake in Nuvama Wealth Management, the company said in an exchange filing. While the exact quantum and price of the stake sold were not disclosed, the filing confirmed that both Shah and Ramaswamy, who are classified as public shareholders in Nuvama Wealth, have reduced their holdings.

"In order to comply with the minimum public shareholding requirements stipulated by regulatory authorities, promoters of the company, including Rashesh Shah and Venkatchalam Ramaswamy, have divested part of their shares in Nuvama," the company said.

As of the June quarter, Rashesh Shah held a 4 per cent stake, while Venkatchalam Ramaswamy owned 1.79 per cent in Nuvama Wealth. Investor Mukul Agrawal also holds 1.41 per cent stake in the company.

 

The promoter group collectively held a 55.68 per cent stake in Nuvama Wealth at the end of the same period.

Nuvama demerger and listing on stock market

The move follows Nuvama Wealth Management's recent listing on the BSE and NSE on September 26, 2023, following the demerger of Edelweiss Financial Services' wealth management business. The divestment by the promoters was carried out to comply with regulatory requirements for minimum public shareholding.

The listing of Nuvama Wealth Management followed a significant restructuring process that began in 2020, when PAG, an Asia-focused alternative investment firm, acquired a stake in the wealth management business of Edelweiss Financial Services. This transaction paved the way for the eventual demerger and the subsequent listing of Nuvama Wealth as an independent entity.

In its filing, Edelweiss Financial Services reiterated its confidence in Nuvama, describing it as one of India's leading integrated wealth management platforms. "We continue to believe in Nuvama, which has over a period of time, built one of India’s leading integrated wealth management platforms," the filing stated.

Nuvama Wealth's shares have seen significant movement in recent months, rising in tandem with broader trends in capital-market-linked stocks. Despite a decline on Wednesday, the stock has surged by 31 per cent in the past month.