Shares of this small-cap financial services provider hit a 5 percent upper price band and reached a 52-week high after a block deal involving several companies, including the Abu Dhabi Investment Authority.
Price Movement
In Monday’s trading session, Edelweiss Financial Services Ltd‘s share price reached a 52-week high of Rs.137.35 per share and also hit a 5 percent upper price band from its previous close of Rs.125.15 apiece. The share has retreated since then and is trading currently at Rs.131.4 per share.
What happened
On 13th September, several prominent investors made significant acquisitions in Edelweiss Financial Services Ltd, which specializes in investment banking, advisory services, and holding company activities.
The Abu Dhabi Investment Authority purchased 35,68,500 shares, while India Acorn ICAV – Ashoka Whiteoak Emerging Markets Equity Fund bought 2,76,400 shares. Additionally, India Acorn ICAV acquired 53,73,800 shares, and Ashoka India Equity Investment Trust PLC secured 6,60,300 shares in the block deal.
The Edelweiss Employees Welfare Trust was the seller in all these transactions, with a total of 98,79,000 company shares exchanged in the block deals.
Shareholding Pattern
According to the June 2024 shareholding pattern, the promoters hold a 32.76 percent stake in Edelweiss Financial Services Ltd. Foreign Institutional Investors (FII) own 28.32 percent, while Domestic Institutional Investors (DII) and retail investors hold 2.7 percent and 31.5 percent, respectively. The remaining 4.8 percent stake is held by other shareholders.
Business Snapshots
Edelweiss Financial Services reported strong profitability and growth. Customer reach grew by 38 percent year-on-year to 8.2 million, and assets increased by 13 percent to Rs.2.2 trillion.
Alternative asset management’s FPAUM (Funds and Portfolio Assets Under Management) rose by 32 percent to Rs.32,350 crore, while total AUM climbed 17 percent to Rs.56,350 crore.
Mutual fund equity AUM surged 71 percent to Rs.52,500 crore, and total AUM grew 24 percent to Rs.1,36,000 crore. General insurance gross written premium jumped 56 percent to Rs.236 crore.
Financials
For the quarter ending June 2024, Edelweiss Financial Services Ltd reported a notable net profit of Rs.85 crore, a 9 percent increase from Rs.78 crore in Q1 FY24. Revenue from operations surged to Rs.2,325 crore, reflecting a 17.5 percent rise from Rs.1,979 crore in the same period.
Company Profile
Edelweiss Financial Services Ltd, based in Mumbai, India, is a diversified financial services company that provides investment banking, asset management, and insurance services.
Written by – Siddesh S Raskar
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