Edelweiss Founders Divest Stake in Nuvama Wealth to Meet Regulatory Requirements

Edelweiss Financial Services Ltd founders Rashesh Shah and Venkatchalam Ramaswamy have sold part of their stake in Nuvama Wealth Management to meet regulatory minimum public shareholding requirements, according to an exchange filing.

While the exact amount and price of the shares sold were not specified, Shah held a 4% stake, and Ramaswamy owned 1.79% as of the June quarter.

The promoter group collectively held a 55.68% stake in Nuvama at that time. This divestment follows Nuvama’s recent listing on the BSE and NSE on September 26, 2023, after the demerger of Edelweiss’s wealth management business.

The restructuring began in 2020 when PAG acquired a stake in the firm. Edelweiss expressed confidence in Nuvama, noting its position as a leading integrated wealth management platform. Despite a recent decline, Nuvama’s shares have risen 31% in the past month, reflecting positive trends in capital-market-linked stocks.