Dec 20: Edelweiss Financial Services Ltd, the parent company of the Mumbai- based Edelweiss Group, on Wednesday announced the acquisition of the securities business of financial services giant Religare Enterprises Ltd by Edelweiss Wealth Management.
Religare’s security business includes securities and commodities broking, and depository participant services.
According to Edelweiss, it will also take on the pan-India distribution of around 1,250 points of presence including over 90 branches, over 1 million clients and the employees of the business. The acquisition is subject to receipt of requisite regulatory clearances and fulfillment of terms and conditions customary to a transaction of this nature, it said.
Shares of both the companies surged on BSE after the news came in. At 11.55 am, the Re 1 face value shares of Edelweiss were trading at Rs 295.90, up 1.60% from the previous closing of Rs 291.25.
Meanwhwile, Religare shares touched a new one month-high of Rs 73.15, up 4.95% from the previous closing of Rs 69.70, on Wednesday morning trade.
Commenting on the announcement, Nitin Jain, CEO, Global Wealth & Asset Management, Edelweiss Group, said, “the favorable macro-economic environment, supported by the growing financialization of savings and rising affluence, has favorably impacted our wealth management business that has seen over 70% growth over the last fiscal. The complementary nature of Religare’s business to our wealth management platform made for an attractive choice, as it expands our offering and supports our growth plans”.
According to Rahul Jain, Head of Personal Wealth Advisory, Edelweiss Global Wealth Management, “the acquisition of Religare’s business helps us instantly expand our geographical reach and distribution footprint, while almost trebling our client base. We, at Edelweiss, have focused on providing comprehensive wealth management services to the underserved, but highly aspirational and growing affluent segment that includes MSMEs, salaried individuals and the self-employed. This acquisition should provide a fillip to our growth in this segment”.