Sunil Singhania's Abakkus Asset Manager acquires stake worth ₹64.30 cr in Edelweiss Financial Services. Check details

Shares of Edelweiss Financial Services will be on focus on Thursday's session following a block deal transaction. Abakkus Asset Manager Private Limited, led by Sunil Singhania, purchased more than 64.3 lakh shares of smallcap Edelweiss Financial Services in a block transaction valued at ₹64 crore. The shares were obtained at a price of ₹100 each.

The sellers involved were Edelweiss Employees Welfare Trust and Edelweiss Employees Incentives and Welfare Trust, which sold 11.29 lakh and 53 lakh shares, respectively, during Tuesday's trading session. On Tuesday, shares of Edelweiss Financial Services ended 7% higher at ₹107.85 apiece on the BSE. Indian markets were closed today on account of Ganesh Chaturthi.

Last week, Edelweiss Financial Services, a global investment firm, announced that WestBridge Capital has purchased a 15% interest in Edelweiss Asset Management for ₹450 crore. This transaction places the valuation of the asset management company at approximately ₹3,000 crore.

The agreement is advantageous for all parties involved and arrives at a timely moment for Edelweiss Mutual Fund (MF), as it transitions into its next growth phase, according to a statement from Edelweiss Financial Services.

In Q1 FY2025-26, Edelweiss Financial Services recorded a net profit of ₹66.77 crore, reflecting a year-on-year increase of 13.38%. The total revenue amounted to ₹2,245.65 crore, which is a decrease of 3.42% compared to the previous year. The profit before tax increased by 5.43% year-on-year, reaching ₹110.39 crore.

Rashesh Shah, Chairman of Edelweiss Financial Services, noted that the balance sheet remains robust, with well-capitalised operations and positive momentum across key indicators. The company is committed to its core objectives, aiming to enhance profitability in its underlying businesses, which have seen a compound annual growth rate of 29% since June ’23.

Shah stated that their insurance initiatives are expected to reach breakeven by FY27, with losses diminishing by 93% year-on-year for this quarter. Additionally, they are making headway on their corporate net debt reduction strategy, having identified distinct levers for the upcoming three years. At the same time, they are reinforcing the EAAA business and planning to initiate the IPO around April 2026.

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