Financial services group Edelweiss is in talks to sell a 20% stake in its wealth management unit to US-based investment firm Kora Management, a media report said.
Kora may pay Rs 2,000 crore for the stake in Edelweiss Global Wealth Management Ltd, valuing the unit at Rs10,000 crore, The Economic Times said, citing two people aware of the development.
"Edelweiss is in touch with prominent global institutional investors, who want to invest in high quality companies and are keen to partner in the India growth story," a source told the newspaper.
Edelweiss is in touch with prominent global institutional investors, who want to invest in high quality companies and are keen to partner in the India growth story"
Edelweiss Group may use the proceeds from the stake sale to meet its debt obligations during the quarter, the report said. The group has debt obligations, including principal and interest of Rs 6,500 crore due on September 30, the report added.
New York-based Kora, which has an office in Mumbai, had picked up a minority stake in Satin Creditcare last year.
In December last year, Edelweiss was said to be in talks with several private equity firms including Blackstone, KKR and TPG to sell a stake in the wealth management unit.
Edelweiss Wealth Management provides advisory distribution, broking and asset services, ESOP & margin funding. It plans to focus on scaling its wealth management services in 2020, especially for the affluent business, as in the credit business it is looking to conserve liquidity and maintain asset quality over book growth. It advises assets of over Rs 1 lakh crore, and has a client base of over 4.8 lakh.