Edelweiss Financial Services share hit upper circuit of 5% in early trade after the Edelweiss Group said wealth management firm PAG Group has invested Rs 2,366 crore to acquire controlling stake in Edelweiss Wealth Management.
Share of Edelweiss Financial Services gained 5% to Rs 85.35 against previous close of Rs 81.30 on BSE. Market cap of the firm rose to Rs 7,953 crore on BSE. Edelweiss Financial share climbed 132% in one year and gained 24.36% since the beginning of this year.
In a month, the stock has risen 35.53%. For the quarter ended December 2020,number of FIIs holding the stock have decreased from 169 to 143.
"PAG has made an investment of approximately Rs 2,366 crore in EWM, including primary and secondary investment," Edelweiss Group said in a filing.
Edelweiss Wealth Management (EWM) reported revenues of Rs 800 crore and profit after tax of Rs 180 crore for nine-month ended December 31, 2020. It said the primary capital infusion in the EWM business from PAG will further strengthen the equity base of EWM and ensure availability of growth capital.
"Pursuant to these transactions, PAG Group and EFSL will be the shareholders in EWM, of which PAG will hold a controlling stake," the filing said.
Edelweiss and PAG will continue to work together towards value unlocking through demerger and listing of EWM business, it added.