Synopsis:
Nuvama Wealth Management reports that PAG, backed by Blackstone, is seeking new buyers for its 54.74 percent stake worth over Rs 12,000 crore. Talks with Permira and CVC stalled as offers fell short of expectations. PAG is now approaching global investors, though the deal’s outcome remains uncertain.
The shares of this leading wealth management firm are in focus as the promoter is watching out for new buyers, as previous negotiations had failed. In this article, we will dive more into the details.
With a market capitalization of Rs 23,284 crore, the shares of Nuvama Wealth Management Ltd made a day high of Rs 6,495 per share, up by percent from its previous day closing price of Rs 6,169.50 per share. In the last one year, the stock has corrected by over 5 percent.
About the news
Asian investment firm PAG, backed by Blackstone, is seeking new buyers to sell its 54.74 percent controlling stake in Nuvama Wealth Management Ltd., as talks with existing bidders have come to a dead end. While PAG aims to get more than Rs. 4,000 crore, offers from Permira and CVC Capital are not enough to meet the target.
PAG acquired a 61.5 percent stake in Nuvama (formerly Edelweiss Wealth Management) in 2021 for Rs. 2,366 crores. The share is now worth more than Rs. 12,000 crores. Any deal will open a supplementary open offer for 26 percent of minority shareholders, which will also be initiated.
Even after the valuations are at a much discounted price, the negotiations are not progressing, and PAG is now contacting more international buyers in the hope of obtaining a higher valuation. The transaction is still at a standstill, and it could go any way.
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Financial Highlights
Nuvama’s revenue for Q1 FY26 came in at Rs 1,123 crore, up by 13 percent from Rs 949 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 0.3 percent from Rs 1,120 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 19 percent to Rs 264 crore in Q1 FY26 as compared to Rs 221 crore in Q1 FY25. Additionally, on a QoQ basis, it grew by 4 percent from Rs 255 crore.
The company has delivered an ROE and ROCE of 30.87 percent and 20.40 percent respectively, and is currently trading at a P/E of 22.75x as compared to its industry average of 15.70x.
Nuvama Wealth Management Limited is all about wealth management, asset management, and capital markets. They provide a range of services, including debt advisory, clearing, portfolio management, and investment advisory. Additionally, the company is involved in institutional broking, distributing financial products, lending against securities, and managing alternative investment funds.
Written by Satyajeet Mukherjee
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