Edelweiss Financial Services shares soared as much as 11.25 per cent on Monday after it informed bourses that Edelweiss Group, a leading diversified financial services company in India has entered into a long-term partnership agreement with Caisse de depot et placement du Quebec (CDPQ), one of Canada’s largest pension fund managers. The agreement includes target investments by CDPQ of Rs 5,000 crore over four years that will provide Edelweiss Group with capital to invest in stressed assets and private debt opportunities in India.
At 11.53 am, shares of Edelweiss Financial Services were trading 6.84 per cent up at Rs 121. The scrip opened the day at Rs 115.50 and has touched a high and low of Rs 126 and Rs 115.50, respectively, in trade so far. Later, the scrip settled 8.52 per cent up at Rs 122.90.
The partnership creates one of the largest and most diversified credit investing platforms in India. With over five decades of experience in managing public funds, CDPQ joins hands with Edelweiss Group, which has significant experience and expertise in specialised corporate credit and is a leader in stressed asset investment.
In a BSE filing, the company said, “This platform will invest in assets with the aim of restructuring debt and turning around companies, as well as becoming the provider of financing to Indian entrepreneurs and companies. These investments, to be carried out by Edelweiss ARC and through different Edelweiss funds, will result in the purchase of nonperforming loans from Indian banks and investments in private debt of growing Indian companies. To this end, Edelweiss recently established a consulting team to add value and make operational improvements in promising industrial businesses with a focus on Remake in India.”