Edelweiss shares fall nearly 4% as promoters cut stake in Nuvama Wealth to meet comply with shareholding requirements

The company stated that the promoters of the company, Rashesh Shah and Venkatchalam Ramaswamy have divested part of their shares in Nuvama in order to meet the minimum public shareholding requirements stipulated by the regulatory authorities.

Shares of Nuvama Wealth were trading lower by 0.53% at ₹6,223.15 per share. Shares of the company have seen significant growth since listing and have risen by over 138%.

For the quarter ended June 30, 2024, Edelweiss reported a 2.7% year-on-year (YoY) decline in ex-insurance net profit to ₹107 crore. The company’s alternative asset management business reported a 44% YoY rise in net profit to ₹66 crore while the mutual fund business’ net profit surged 147% YoY to ₹26 crore. The company’s asset reconstruction business saw a 6% YoY rise in net profit to ₹85 crore.

In Q1FY25, the alternative asset management business saw a 17% YoY jump in its assets under management (AUM) to ₹56,350 crore. The AUM of the mutual fund business grew 24% YoY to ₹1,36,000 crore with equity AUM surging 71% YoY to ₹52,500 crore.

The asset reconstruction business recovered 18% of its retail portfolio during the quarter amounting to ₹1,332 crore.

Edelweiss’ insurance business saw broad-based growth with a 73% YoY growth in general insurance policies issued to 1.2 lakh. The life insurance segment saw a 10% YoY growth in gross premium to ₹275 crore while AUM grew 21% YoY to ₹8,343 crore.

Shares of the company have risen by nearly 23% since the beginning of the year. The stock has gained over 88% in the past year