Shares of Edelweiss Financial Services on Wednesday surged as much as 4.6 per cent, after its subsidiary Edelweiss Tokio Life Insurance got necessary approval from FIPB to increase its FDI cap.
At 2.26 pm, Edelweiss Financial Services shares were trading 1.29 per cent higher at Rs 54.80 apiece. The scrip opened at Rs 55.80 and touched a high and low of Rs 56.60 and 54.65, in trade so far.
The Foreign Investment Promotion Board (FIPB) on Tuesday gave its nod to the proposal of Edelweiss Tokio Life Insurance Co to increase foreign equity from 26 per cent to 49 per cent of its paid-up capital.
This is the second FDI proposal to come to the insurance space after the government passed a new law allowing 49 per cent foreign holding in the sector. The first FDI proposal was that of Bharti Axa.
Edelweiss Tokio Life Insurance is a joint venture between Edelweiss Financial Services and Japan’s Tokio Marine Holdings, which is a global leader with over 135 years of experience in the business.
The Japanese company currently owns 26 per cent stake in the joint venture.
The scrip closed 1.48 per cent higher at Rs 54.90.