India-based Edelweiss Financial Services (EFSL) has secured approval from the shareholders for the planned demerger of its wealth management operations.

The approval will help in EFSL to list the shares of Nuvama Wealth Management (NWML), which was previously called Edelweiss Wealth Management.

As part of the move, NWML will offer 1,05,28,746 equity shares with a face value of INR10 ($0.12) each to the Edelweiss Financial shareholders on a proportionate basis.

Once the listing is completed, Edelweiss will retain a 14% stake in NWML, while the shareholders of EFSL will own a 30% of the paid-share capital.

Investment group PAG, which bought a controlling stake in EWM for around $300m in 2020, will hold a 56% stake in NWML.

EFSL revealed the demerger and subsequent listing of Edelweiss Wealth Management after selling the stake to PAG.

In a statement, EFSL  said: “The company’s focus has always been on long term value creation and the demerger is aimed at providing the shareholders with an opportunity to directly participate in Nuvama’s growth journey in addition to EFSL’s journey.

“The approval of the equity shareholders received today is another step in that direction.”

Until Dec 22 last year, Nuvama had around INR2.25 trillion assets under administration (AuA) and nearly 1.035 million customers.

The firm offers wealth management services to the affluent, high net-worth individual (HNI) and ultra-high net-worth individual (UHNI) markets.