Edelweiss Reduces Stake in Nuvama: Market Impact Unfolds

Edelweiss Financial Services sold a 7.14% stake in Nuvama Wealth Management for Rs 1,759 crore. The transaction was executed via two affiliates in an open market sale. Meanwhile, Kotak Mutual Fund bought a minor stake. Nuvama's shares are under scrutiny after a SEBI warning.

In a significant market maneuver, Edelweiss Financial Services divested a 7.14% stake in Nuvama Wealth Management through an open market transaction on Thursday, reaping Rs 1,759 crore. The transaction, executed by its affiliates Ecap Equities Ltd and Edel Finance Company Ltd, involved the offloading of 25.50 lakh shares in the Mumbai-based company.

The shares were sold at prices ranging between Rs 6,854.15 and Rs 6,941.30 each, as recorded in the bulk deal data on the NSE. This move follows a previous sale in August and comes amid a recent administrative warning issued by SEBI to Nuvama Wealth Management concerning its merchant banking activities.

Simultaneously, Kotak Mutual Fund acquired 2.71 lakh shares, thereby claiming a 0.8% stake in the wealth management firm, at an average purchase price of Rs 6,851 per share. The deal was valued at Rs 185.78 crore. Despite these transactions, Nuvama's shares dipped, closing down 5.05% at Rs 6,928.65 on the NSE.

(With inputs from agencies.)