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March 22, 2022

India’s Edelweiss to list wealth arm through demerger

India-based Edelweiss Group is set to list the shares of its wealth management division in stock exchanges through a demerger, reported The Hindu Business Line.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
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The move will see Edelweiss Wealth Management (EWM) getting decoupled from its holding company Edelweiss Securities.

The listing is expected to take place by end of this year or latest by January 2023, EWM managing director and CEO Ashish Kehair told the publication.

Kehair was quoted as saying: “We are looking at demerger route through the listed company. Since its coming out of a listed company, the demerged business will get automatically listed.”

The proposed demerger is claimed to ‘unlock value for shareholders’.

The firm is expected to obtain regulatory and stock exchange related clearances for the demerger by the end of this year.

Kehair added: “We expect the hive-off to be done by December. There are two stages — first gets over in April and the second stage starts immediately.”

EWM is targeting a compound annual growth rate between 22% and 25% in client assets in the next four- to five-year-period, according to Kehair. 

The division, which is said to serve 800,000 ‘affluent’ clients and about 2,500 to 3,000 HNW families, is targeting to grow its overall client base by 30% to 40% annually.

It manages approximately $26.28bn in client assets.

According to Kehair, EWM is planning to roll out several strategies in alternative asset management, including a venture debt fund.

He also added that the division is eyeing inorganic expansion to grow its business in future.

In August last year, Investment group PAG acquired controlling stake in EWM for around $300m.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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