Nuvama Wealth Management To Make Stock Market Debut Next Week, Targets Rs 9,000 Cr Market Cap: Report

Nuvama Wealth Management, which is a spin- off from Edelweiss Financial Services, is likely to make a stock market debut next week and is expected to list with a market capitalisation between Rs 8,000 – 9,000 crore, top executive was quoted as saying by The Economic Times.

The company, which was earlier known as Edelweiss Wealth Management, has reportedly received a nod from shareholders and almost all the authorities, including the National Company Law Tribunal and stock exchanges, for listing, chief executive and managing director Ashish Kehair said.

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Nuvama reported a net profit of ₹323 crore for the year ended for March 2023. As part of the demerger plan, Nuvama allocated 10.5 million shares to the shareholders of Edelweiss Financial in a proportionate manner as compensation for the demerger.

Nuvama is primarily owned by PAG, a private equity fund, with a controlling stake of 56%. Edelweiss Group holds approximately 14% of the company, and the remaining ownership is distributed among the shareholders of Edelweiss Financial Services.

Kehair further added that the listing will offer significant advantages to shareholders, enabling them to unlock value. Additionally, it will empower the company to leverage enhanced disclosures and transparency, benefiting all stakeholders, including lenders and rating agencies.

The company also aims to double its RM team for Nuvama Wealth in the next 3-4 years. It also plans to extend the presence of Nuvama Wealth from the current 69 locations to 100-plus by FY25, as per ET report.

“The group has strategic offshore expansion plans and intends to establish a presence in two international centres - Dubai and Singapore - for the wealth management business,” Kehair said.

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As per Kehair's statement, the company is set to introduce fresh strategies in the asset management sector within the upcoming year. They have plans to unveil a commercial real estate fund in the near future, followed by a private credit fund. 

Notably, the firm has already included an absolute return fund among its range of offered products. As of June 30, 2023, Nuvama has overseen client assets amounting to approximately ₹2.5 lakh crore and possesses a net worth of ₹2,349 crore.