Shares of Nuvama Wealth Management, which spun off from Edelweiss Financial Services, were listed and admitted for dealing on the BSE and the National Stock Exchange today. With this, Nuvama Wealth joined the league of listed wealth management players such as Anand Rathi Wealth and Prudent Corporate Advisory Services.
The shares of Nuvama Wealth, formerly known as Edelweiss Securities, were listed at ₹2,750 on the National Stock Exchange (NSE), while the stock opened at ₹2,699 on the BSE.
Post listing, Nuvama Wealth shares witnessed sharp volatility as investors resorted to book profit at higher levels. The stocks were locked in a 5% lower circuit limit of ₹2,612.50 and ₹2,564.10 on the NSE and BSE, respectively.
The equity shares of Nuvama Wealth Management have been listed and admitted to dealings on the exchange in the list of ''T'' group securities, the company says in a BSE filing.
Nuvama Wealth, controlled by PAG - one of Asia's largest Alternative Investment Fund (AIFs), is a wealth management platform for affluent, HNI, and UHNI segments, constituting 80% of market wealth. In 2020, PAG picked up stake in the wealth management business of Edelweiss, known as Edelweiss Wealth Management, and the company announced the demerger and subsequent listing of its wealth management business.
In February, shareholders of Edelweiss approved the demerger proposal, followed by other authorities, such as the National Company Law Tribunal and stock exchanges.
Post listing, PAG holds 56% controlling stake in Nuvama Wealth, while Edelweiss continues to hold 14% shares in the company and the shareholders of Edelweiss Financial Services own 30% of the paid-share capital. Nuvama Wealth allocated 1.05 crore shares to the shareholders of Edelweiss Financial Services on a proportionate basis as a consideration for demerger.
For the financial year ended on March 31, 2023, Nuvama Wealth Management reported a net profit of ₹323 crore. The asset under management (AUM) stood at ₹2.25 lakh crore and it intends to raise it to ₹6 lakh crore by FY 2027-28.
As per the company, Nuvama is strategically positioned to capitalise on the growth opportunities presented by the Indian financial services sector. As India is poised to ascend to the status of the fourth-largest private wealth market globally by 2028, the listing of Nuvama is a strategic move that equips the company to seize the vast potential within this dynamic and rapidly evolving industry. In doing so, Nuvama aims to redefine wealth management in India, setting new standards of excellence and client-focused innovation.
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