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Edelweiss Financial share climbs 5% as Ontario Teachers' to invest Rs 2,600 crore with group

BusinessToday.In     September 3, 2020

Edelweiss Financial stock rose 5% today after Canada's Ontario  Teachers' Pension  Plan  Board  inked a deal with Edelweiss Group to invest Rs 2,600 crore with the Edelweiss Alternate Asset Advisors. Edelweiss Financial share has gained after 3 days of consecutive fall. The stock opened with a gain of 2.58% at Rs 79.40 today. The share touched an intraday high of Rs 81.25, up 4.97%.

The share stands higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

It has lost 26.64% in one year and lost 26.54% since the beginning of this year.  Total 1.25 lakh shares changed hands amounting to turnover of Rs 1 crore on BSE. Later , the share closed 3.36% higher at Rs 80 on BSE.

The deal represents a long-term partnership between Ontario Teachers' and Edelweiss Group that will focus on performing and distressed private credit investment opportunities in the Indian market.

Rashesh Shah, Chairman and CEO, Edelweiss Group said, "This partnership comes at a time when there is a thrust towards empowering and enabling India to become a global manufacturing hub as vocalised by the Government's 'Atmanirbhar - self-reliance' vision. The need for long-term  patient capital in India  presents a huge opportunity  for private debt managers."

Edelweiss to sell 51% stake in wealth management arm to PAG

On August 28, share price of Edelweiss Financial Services gained over 3% after the firm said Hong Kong-based private equity firm  Pacific Alliance Group (PAG) will buy a 51% stake in its wealth management business for Rs 2,244 crore.

The transaction is expected to close in the next 4-6 months subject to regulatory approvals. The financial services firm plans to list demerge and list Edelweiss Wealth Management after the completion of transaction.

This is largest equity raise by Edelweiss Group till date, the firm said.

Meanwhile, reversing 2 days of consecutive gains, Sensex ended 95 points lower to 38,990 and Nifty closed 0.75 points higher at 11,535.

Share Market Highlights: Sensex ends 95 points lower, Nifty at 11,535; PowerGrid, Axis Bank top losers

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