Edelweiss Financial Services' shares are expected to be in focus on Tuesday as it prepares to sell a minority stake in its mutual fund company, Edelweiss Mutual Fund.
"To further strengthen our international business, we are open to exploring opportunities with minority strategic partners, ensuring there is a strong alignment in values and vision," said Radhika Gupta, CEO of Edelweiss
It was also assumed that the firm had chosen Nomura as its transaction advisor, for which the stock exchanges had requested clarification from the company. However, the company highlighted in an exchange filing that it has provided all necessary information to the exchanges and will continue to do so.
"The company has subsidiaries that are involved in a variety of sectors, including insurance, alternative asset management, mutual funds, and so on. The Company has been examining various options for increasing shareholder value, such as selling stakes in subsidiaries or listing them on stock exchanges," according to the filing.
To that purpose, the company intends to list its wealth management sector on the stock exchanges by 2023. At Edelweiss, we've already discussed the concept of value unlocking in a number of forums and earnings calls. The corporation stated that it must appoint experts on a regular basis to advise on the manner and timing of value unlocking.
Edelweiss Financial Services' stock closed 1.33% higher on Monday at Rs 107.05 on the BSE.
