BAJAJ BROKING
Edel Finance and Ecap Equities plan to sell a 6.4% stake in Nuvama Wealth Management. The floor price of ₹6,455 per share is 5% below the current market price of ₹6,825 on the NSE.
Edel Finance and Ecap Equities have announced the sale of their combined 6.4% equity stake in Nuvama Wealth Management through block deals. This move has garnered attention due to the significant size of the transaction. The floor price for the deal has been set at ₹6,455 per share, representing a 5% discount compared to Nuvama’s last closing price of ₹6,825 on the National Stock Exchange (NSE). The overall value of the block deal stands at approximately ₹1,464.8 crore.
At the close of the first quarter, Ecap Equities held 8.44% of the total stake in Nuvama Wealth Management, while Edel Finance possessed 5.18%. This joint sale of 6.4% of Nuvama’s equity marks a significant reshuffling of ownership in the company. Both companies will be under a lock-up period for 75 days after the sale, preventing any further transactions of these shares during this period.
The floor price of ₹6,455 per share has been carefully calculated, offering a 5% discount to the current market price. The price discount is expected to attract buyers looking to gain exposure to the wealth management sector at a competitive rate. With the deal size amounting to ₹1,464.8 crore, it indicates the financial heft behind the decision.
This move reflects the growing institutional interest in wealth management. Similar to previous divestments by Edelweiss Financial Services’ founders in August, this sale is part of a broader repositioning by major players in the sector. Nuvama Wealth Management has emerged as a prominent entity in the market, and this transaction adds to the narrative of high-value movements in the company’s stock.
The sale of this equity stake represents a strategic decision by both Edel Finance and Ecap Equities. The lock-up period post-sale ensures that Nuvama’s share price remains stable, benefiting all stakeholders involved.
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