Edelweiss and Religare have announced the acquisition by Edelweiss Wealth Management of Religare’s securities business, which includes securities and commodities broking, and depository participant services.
Edelweiss will also 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, Edelweiss Group said in a statement.
The acquisition is subject to receipt of requisite regulatory clearances and fulfillment of terms and conditions customary to a transaction of this nature.
Shares of Religare Enterprises jumped as much as 5 per cent to Rs 73.15 on the BSE. Edelweiss Financial stock climbed as much as 2.5 per cent to Rs 298.65.
The statement said Edelweiss Wealth Management has consistently looked at synergistic growth opportunities and expansion, especially for its asset & 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).
Nitin Jain, CEO, Global Wealth & Asset Management, Edelweiss Group, said, “The favourable macro-economic environment, supported by the growing financialisation of savings and rising affluence, has favourably 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”.
“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.
The Edelweiss Group is one of India’s leading diversified financial services companies providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals.