Edelweiss Wealth Management will soon be acquiring the securities business of Religare. This acquisition includes securities and commodities broking in addition to depository participant services. As part of the deal, Edelweiss will take on the India distribution of about 1,250 points of presence which include more than 90 branches and more than 1 million clients as well as the employees of the business. This acquisition is subject to the receipt of regulatory clearances and fulfillment of terms and conditions which are customary to a transaction of this nature.
Nitin Jain, CEO of Global Wealth and Asset Management, Edelweiss Group mentioned that the nature of Religare’s business to the wealth management platform of Edelweiss is an attractive choice as it expands the offering and supports the growth plans.
The shares of Religare Enterprises jumped about 5 percent to Rs.73.15 on the BSE and Edelweiss Financial Stock also climbed as much as 2.5 percent to Rs.298.65. Market experts believe that it will be a good exit opportunity for the holders of the Religare stock which has gone up significantly in the last one month but the exit needs to be timed well.
The statement mentioned that Edelweiss Wealth Management has constantly looked at synergistic growth opportunities and expansion for its asset and wealth management business. It has made acquisitions in the past such as Rooshnil Securities and Anagram Capital Ltd.
S.Lakshminarayanan, Executive Chairman, Religare Enterprises Ltd mentioned that they received interest from many potential suitors for the business and they chose Edelweiss because it has the most suitable product palette for the existing clients and partners in addition to showing keen interest on retaining the entire workforce of Religare.
The Edelweiss Group is a leading diversified financial services company in the country and provides a broad range of financial products and services to a diversified client base which includes corporations, individuals and institutions.
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