Edelweiss Financial Services Limited has received the shareholders’ approval for the proposed demerger of its Wealth Management business. As per the scheme, a new company will be formed and listed as Nuvama Wealth Management Limited (NWML).
The newly formed NWML will allot 1,05 Crore equity shares of the face value of Rs 10 each to the shareholders of EFSL (as on the record date) on a proportionate basis as consideration for demerger.
After listing, Edelweiss would continue to hold a 14 percent stake in NWML and the shareholders of Edelweiss Financial Services would hold 30 percent of the paid-share capital.
The Edelweiss Group is one of India’s leading diversified financial services companies, providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions, and individuals.
The shares of the company declined by 2 percent and were trading at Rs 63 levels on Monday afternoon. In a month, the stock has declined by 7 percent however on a yearly basis, the stock has gained approximately 15 percent.
In Q3FY23, the company reported a total income of Rs 2,141.61 Crore, a jump of 13 percent YoY from Rs 1,887 Crore and a marginal increase QoQ from Rs 2,099 Crore.
Their net profit in the period stood at Rs 121.53 Crore, which increased 60 percent from Rs 76.19 Crore in the same quarter the year earlier. From the previous quarter, their profits jumped 58 percent from Rs 76.51 Crore.
The company has a market capitalization of Rs 5,922 Crore and a dividend yield of 2.31 percent. In addition to that, the stock remains undervalued as its TTM PE is at 24.94 while the sectoral average is 36.39.
Written by Anoushka Roy
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