Nuvama Wealth begins trading on India's major stock exchanges

Nuvama Wealth Management, which spun off from Edelweiss Financial Services, started trading on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on Tuesday. The listing positions Nuvama alongside other publicly traded wealth management firms such as Anand Rathi Wealth and Prudent Corporate Advisory Services.

In its trading debut, shares of the company, previously known as Edelweiss Securities, were listed at ₹2,750 on the NSE and opened at ₹2,699 on the BSE. However, share prices saw significant fluctuations post-listing as investors opted to secure profits at higher levels. This led to the stocks hitting a 5% lower circuit limit of ₹2,612.5 and ₹2,564.1 on the NSE and BSE respectively.

Nuvama Wealth is largely controlled by PAG, one of Asia's biggest Alternative Investment Funds (AIFs). The firm primarily serves affluent High Net Worth Individual (HNI (NYSE:HNI)) and Ultra High Net Worth Individual (UHNI) segments, which constitute 80% of market wealth. PAG acquired a stake in Edelweiss's wealth management business in 2020, a move that precipitated the decision to demerge and subsequently list the wealth management business.

The demerger proposal received approval from Edelweiss shareholders in February and was later greenlit by other authorities including the National Company Law Tribunal and stock exchanges. Post-listing, PAG holds a controlling stake of 56% in Nuvama Wealth. Edelweiss retains a 14% share in the company while Edelweiss Financial Services shareholders own 30% of the paid-share capital. As part of the demerger agreement, Nuvama Wealth allocated 1.05 crore shares to Edelweiss Financial Services shareholders on a proportionate basis.

For the fiscal year ending March 31, 2023, Nuvama Wealth Management reported a net profit of ₹323 crore. The company's assets under management (AUM) are valued at ₹2.25 lakh crore, with plans to increase this figure to ₹6 lakh crore by the 2027-28 fiscal year.

Nuvama Wealth's listing is a strategic step towards tapping into the rapidly evolving Indian financial services sector. The company aims to capitalize on growth opportunities within this industry as India is expected to become the fourth-largest private wealth market globally by 2028. Nuvama seeks to redefine wealth management standards in India through client-focused innovation and excellence.

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