Leading private equity firms CVC Capital Partners, Permira, and EQT are in advanced talks with Asia-Pacific specialist PAG to acquire its controlling stake in Nuvama Wealth Management Ltd (NWML), formerly Edelweiss Wealth Management,according to a report of The Economic Times. The deal, potentially valued at $1.6 billion, pits these contenders against HSBC, Europe’s largest bank by market capitalisation, in a close contest.
PAG currently holds a 54.78% stake in Nuvama, a company boasting a market capitalisation of Rs 26,150.87 crore. The prospective transaction will trigger an open offer for 26% of minority shareholder shares, with PAG’s stake alone valued at approximately Rs 14,383 crore as of a latest closing.
This strategic sale process was initiated earlier this year after Nuvama’s impressive post-listing rally — its stock price surged 114% since debuting in September 2023, including a 55.02% gain in the past year alone. Investment banks JP Morgan and Morgan Stanley are advising PAG on the deal, having first approached strategic buyers before expanding interest to private equity firms.
SEBI Barred Jane Street
Investor confidence took a hit recently after India’s stock market regulator banned Jane Street, Nuvama’s local trading partner, from the securities market over market manipulation allegations. This caused Nuvama’s shares to drop 11%, their biggest fall in three months.
Nuvama’s Impressive Performance
Nuvama reported strong financial results for FY25, with profit after tax rising 58% compared to last year, and a solid return on equity of 31%. However, revenue from the institutional equities and investment banking divisions dropped 27% in Q4 FY25, due to regulatory changes and slower market activity.
The shortlisted buyers have submitted non-binding bids and are currently undertaking due diligence ahead of binding offers expected by month-end. Some analysts believe this timeline may be ambitious.
With strong financial performance and a solid market position, Nuvama Wealth Management continues to be an attractive asset in India’s financial services sector, drawing significant interest from leading global investors.
