Edelweiss Financial Services on Wednesday announced the acquisition of the securities business of Religare Enterprises, which includes securities and commodities broking, and depository participant services.
Edelweiss Financial Services on Wednesday announced the acquisition of the securities business of Religare Enterprises, which includes securities and commodities broking, and depository participant services. In the deal, Edelweiss will take on the pan-India distribution of around 1,250 points of presence including over 90 branches, over 1 million clients and the employees of the business. Following the announcement, shares of Religare Enterprises hit the upper circuit, rising as much as 4.95% to the day’s high of Rs 73.15 while the stock of Edelweiss Financial Services rose 2.54% to the day’s high of Rs 298.65 on BSE on Wednesday.
Within minutes of opening up of the stock market, shares of Religare got locked in upper circuit with more than 9 lakh shares exchanging hands on both BSE and NSE. As far as Edelweiss Financial Services is concerned, the trading volumes were normal around its average, at 1:30 pm, over 19 lakh shares were traded on both BSE and NSE.
Commenting on the announcement, Nitin Jain, CEO, Global Wealth & Asset Management, Edelweiss Group, said, “The favorable macro-economic environment, supported by the growing financialization of savings and rising affluence, has favorably impacted our wealth management business that has seen over 70% growth over the last fiscal. The complementary nature of Religare’s business to our wealth management platform made for an attractive choice, as it expands our offering and supports our growth plans”.
While on the other hand, S. Lakshminarayanan, Executive Chairman of Religare Enterprises Limited, said, “We have had interest from many potential suitors for this business and chose Edelweiss because in addition to having the product palette most suitable for our existing clients and partners, they were keen on retaining Religare’s workforce in its entirety, and this was one of our biggest priorities.”
“The acquisition is subject to receipt of requisite regulatory clearances and fulfillment of terms and conditions customary to a transaction of this nature,” Edelweiss Financial Services said in a press release. Way back in 2001, Edelweiss Wealth Management acquired Rooshnil Securities and later in 2010, it procured Anagram Capital Ltd.