Nuvama Wealth Management debuts on stock markets

Nuvama Wealth Management, formerly Edelweiss Securities, was listed on the stock exchanges on Tuesday, with the stock witnessing certain profit-taking.

It opened at Rs 2,750 on the National Stock Exchange, and by mid-afternoon the stock was trading 5% lower.

Nuvama Wealth Management is part of Edelweiss Financial Services, which went through a process of demerger and subsequent listing following a change in the ownership structure.

In 2020, PAG, an Asian private asset manager for institutional investors, picked up a 56% stake in Nuvama Wealth Management. Post the listing, Edelweiss will hold a 14% stake while the shareholders of Edelweiss Financial Services will own 30%.

The shares of Nuvama Wealth Management are listed under the T-segment or trade-to-trade category, which means that intra-day trade will not be allowed in this stock.

Nuvama Wealth Management joins other publicly listed companies such as Anand Rathi and Prudent Corporate Advisory Services in the same category.

In FY23, Nuvama Wealth Management reported a net profit of Rs 323 crore while its assets under management stood at Rs 2.25 lakh crore, with plans to take it to Rs 6 lakh crore by FY28.

The company is looking to capitalise on the growth opportunities from the Indian financial services sector given how the economy is growing.

The Nuvama Group provides multiple services in the finance sector, which also includes investing in startups.

At the recently concluded Bengaluru edition of TechSparks 2023, the flagship event of YourStory, Anshu Kapoor, President and Head, Nuvama Asset Management, spoke about how the company plans to invest in early-stage startups in the near future. So far, it has been mainly investing in the late-stage category.

“We spent the last six years perfecting late-stage investing. Opportunity for early-stage was there, but earlier investors did not want to invest in a product for 10 years. They didn’t have the risk appetite,” Kapoor said during a fireside chat with Shradha Sharma, Founder and CEO, YourStory Media.