IIFL Wealth Management, the demerged entity of IIFL Holding made a stellar debut on the exchanges on Thursday, after its shares soared 5% to hit the upper circuit.
IIFL Wealth Management, the demerged entity of IIFL Holding made a stellar debut on the exchanges on Thursday, after its shares soared 5% to hit the upper circuit. IIFL Wealth Management shares listed at Rs 1,200 per share on BSE and 1,210 per share on NSE, and soon jumped 5% to hit upper circuit of Rs 1,270 on NSE. Notably, IIFL Wealth Management has now become the first standalone listed wealth management company in India. The parent firm IIFL Holding has diversified interest in three categories, one of them being IIFL Wealth. IIFL Wealth manages alternative investment funds (AIFs). Earlier, leading stock exchanges National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) had permitted listing and commencement of trading for IIFL Wealth from September 19, 2019. Notably, IIFL Securities are slated to make their debut on the exchanges from September 20th.
Earlier, analysts at Kotak Securities had estimated a fair value for the stock at Rs 1,050, at 19 times its estimated EPS or 2.7 times its estimated book in September 2021. IIFL Wealth, one of the largest investor advisors in the country, now manages AUM worth Rs 1,69,312 crore from 10,000 plus high net worth families in India and abroad. In FY19, the company reported an income of Rs 1,059.2 crore and profit of Rs 384 crore. Recently, Financial Express had reported that IIFL Wealth has acquired L&T Capital Market which has an AUM of about Rs 25,000 crore, in a bid to to emerge as a leading player in the space.
In recent times, the company has intensified its inorganic expansions. “The acquisitions we have done over the years help us fortify our presence in regions where we have less presence. Besides, these deals also bring us some top-quality talent by way of sales and non-sales teams and our combined efforts will further strengthen our reach and offerings for high net worth clients,” Sandeep Jethwani, Managing Partner, IIFL Wealth & Asset Management told Financial Express Online in a recent interview.