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.
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.
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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.