Kora Management to invest in Edelweiss Group
Kora Management intends to invest US$ 75 million, which is equivalent to Rs 525 crore, in Edelweiss Global Investment Advisors (EGIA) and further invest US$ 50 million, which is equivalent to Rs 350 crore, in Edelweiss Group.
The US-based company Kora Management is an existing Edelweiss shareholder. According to today’s announcement, the total investment will be equal to US $125 million, which is Rs. 875 crore, subject to customary regulatory approvals.
Kora Management is an investment firm focusing on financial as well as technology sectors in emerging markets. Edelweiss Global Investment Advisors (EGIA) includes the business activities of asset reconstruction, wealth and asset management and institutional client group, which contribute towards 50 per cent of the Edelweiss group’s profits. The increase in investment continues to assert the strengthening performance of Edelweiss. The group had previously separated its three businesses of credit, advisory and insurance into distinct entities as part of its strategic plan. Each business has its own set of investors, thus credit and life insurance businesses have received long term strategic investment of US $250 million. The new investment will initiate the third and final process in the advisory business.
On Wednesday, the stock of Edelweiss Financial Services closed at Rs. 144, up by 1.12 per cent or Rs. 1.60 per share. The stock had hit 52-week high of Rs 299.95 and 52-week low of Rs. 116.15