Edelweiss has bought the retail broking business of Religare Enterprises, which includes the company’s securities and commodities broking services, as well as the depository participant services for Rs 250 crore.According to the statement issued by Edelweiss, “The Edelweiss Wealth Management has consistently looked at synergistic growth opportunities and expansion, especially for its...
Edelweiss has bought the retail broking business of Religare Enterprises, which includes the company’s securities and commodities broking services, as well as the depository participant services for Rs 250 crore.
According to the statement issued by Edelweiss, “The Edelweiss Wealth Management has consistently looked at synergistic growth opportunities and expansion, especially for its asset and wealth management businesses. This is underscored by the fact that in the past it has made acquisitions such as Rooshnil Securities (2001) and Anagram Capital Ltd. (2010).”
Commenting on the deal, 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 per cent 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,” Jain 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,” S Lakshminarayanan, Executive Chairman, Religare Enterprises Ltd, said.
Khaitan & Co acted upon Edelweiss Financial Services, led by Partner Nikhilesh Panchal, Principal Associate Malav Shah accompanied by Associates Manish Chhangani, Aman Yagnik, Tanish Gupta, Ashima Gulati, Murugaveni Pillai and Prakhar Maheshwari.
Religare Securities and Religare Commodities took the services of Wadia Ghandy in the deal.
The deal will only be cleared after getting regulatory clearances and fulfillment of certain terms and conditions and is expected to be completed by March 15, 2018.
The recent acquisition will help Edelweiss to expand its geographical reach and distribution footprint.