As per media reports, global private equity firms are interested in acquiring a significant minority stake in the wealth and asset management business of Edelweiss Financial Services. Big firms like Blackstone, TPG, KKR, Carlyle, Apax Partners etc are looking to acquire about 20-25 percent stake in Edelweiss’ Global Wealth and Asset Management business.
This business of Edelweiss is valued around Rs 12000-15000 crore and as per reports, a new entity maybe created around this,wherein Edelweiss will hold the majority stake. Edelweiss financial, the main holding company, has three main businesses: credit, franchise and advisory and insurance.
The share price of Edelweiss financial is trading at Rs 178.70 at the moment and is expected to cross Rs 200 mark in January, when the above mentioned deal is expected to close. The fundamentals of the company are looking strong and a close above Rs 203, may further give another small rally.
More than 80% delivery of the stock is giving a clear indication that investors expect it to rise. This dividend paying stock is a must add in your portfolio.
Disclaimer: I own some Edelweiss Financial shares and the opinion is not a financial advice.