General Atlantic Singapore Fund PTE sold a stake in IIFL Wealth Management. However, its shares were in the green. They were trading at ₹ 1826.65 apiece at 11:47 AM on Wednesday.
According to the bulk deals data available on the National Stock Exchange (NSE), General Atlantic Singapore Fund PTE sold 31,15,981 shares of the company at an average price of ₹ 1810.09, taking the transaction value to ₹ 564.02 crores. However, Capital Income Builder bought 30,43,328 shares at an average price of ₹ 1810.09, indicating a transaction value of ₹ 550.84 crores.
General Atlantic Singapore Fund PTE is managed by US-based private equity firm General Atlantic. After this transaction, its holding in the company will reduce from 20.96% to 17.46%, as it has divested a 3.5% stake in the company.
IIFL Wealth Management is one of the largest private wealth management firms in India. The company provides services relating to financial products distribution, advisory, and portfolio management services by mobilising funds and assets of various classes of investors including High Networth Individuals. It is a subsidiary of IIFL Holdings.
IIFL Wealth is a mid-cap company with a market capitalization of ₹ 16,144 crores. It has an ideal return on equity of 19.84% and a debt-to-equity ratio of 1.86. Its shares were trading at a price-to-equity ratio (P/E) of 25.28, which is higher than the industry P/E of 21.13, indicating that its shares are overvalued as compared to its peers.
Written by Simran Bafna
