Edelweiss shares gain on mutual fund buyout deal with JP Morgan

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New Delhi | Updated: March 23, 2016 1:01 PM

In the past one year, the share price of Edelweiss Financial Services slipped 7.42 per cent to Rs 58.05 till March 22, whereas BSE Sensex dipped 10.15 per cent during the same period.

edelweiss shares, jp morgan, sensex, nifty, bse, nse, bse starIn the past one year, the share price of Edelweiss Financial Services slipped 7.42 per cent to Rs 58.05 till March 22, whereas BSE Sensex dipped 10.15 per cent during the same period.(Photo: AP)

Shares of Edelweiss Financial Services jumped as much as 3.87 per cent on Wednesday after the company announced that its mutual fund arm — Edelweiss Asset Management will acquire the onshore fund schemes of its much larger competitor, JP Morgan Asset Management India, subject to regulatory approvals. This acquisition will strengthen group’s Rs 31,000 crore global asset management portfolios.

At 12.41 pm, shares of Edelweiss Financial Services were trading 2.33 per cent up at Rs 59.40. The scrip opened at Rs 59.80 and has touched a high and low of Rs 60.30 and Rs 59.10, respectively, in trade so far. Sensex was down 160 points at 25,169.61.

The companies did not disclose the financial details of the acquisition, but sources pegged the deal size at less than Rs 100 crore.

Under the deal, Edelweiss will acquire all onshore fund schemes managed by JP Morgan Asset Management India including its country-based onshore mutual fund business and the international fund of funds, Edelweiss said in a statement.

The promoters holding in Edelweiss stood at 37.81 per cent while institutions and non-institutions held 29.78 per cent and 26.88 per cent, respectively.

In the past one year, the share price of Edelweiss Financial Services slipped 7.42 per cent to Rs 58.05 till March 22, whereas BSE Sensex dipped 10.15 per cent during the same period.

(With agency inputs)

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