Edelweiss Financial Services Ltd (EFSL), an Indian investment and financial services company, has secured approval from its shareholders for the previously announced demerger of its wealth management business.

Previously known as Edelweiss Wealth Management, the wealth management business post-separation will be listed as Nuvama Wealth Management Limited (NWML).

In 2020, Pacific Alliance Group (PAG), an Asian-focused investment firm, invested in Edelweiss Financial Services’ wealth management business. The latter had announced the demerger plans and later the public listing of the wealth management division.

Edelweiss Financial Services said that its primary focus has always been creating value over the long-term and the demerger is targeted at giving shareholders the opportunity to participate directly in the expansion journey of Nuvama Wealth Management alongside the company. The approval of shareholders of the demerger is a further step in this direction, said Edelweiss Financial Services.

In the event of the scheme taking effect, Nuvama Wealth Management will allot 1,05,28,746 equity shares having a face value of INR 10 each to members of Edelweiss Financial Services in proportion to the consideration for the demerger.

After the listing, Edelweiss Financial Services would continue to hold 14% of Nuvama Wealth Management and the company’s shareholders would own 30 percent of the pay- capital of shares. PAG will own 56% of Nuvama Wealth Management.

Nuvama Wealth Management caters to the affluent high net individual, ultra-high net individual segments with assets under administration of INR 2,25,000 crores in addition to around 10.35 lakh customers as on December 2022.

  Edelweiss Financial Services, Edelweiss Wealth Management, India, Nuvama Wealth Management, Pacific Alliance Group, PAG, Wealth management