Edelweiss Financial Services on Wednesday announced the acquisition of the securities business of Religare Enterprises, which incorporates securities and commodities broking, and facility participant services. Within the deal, Edelweiss can wrestle the pan-India distribution of around 1,250 points of presence as well as over ninety branches, over one million purchasers and workers of the business. Following the announcement, shares of Religare Enterprises hit the higher circuit, rising the maximum amount as 4.95% to the day’s high of Rs 73.15 whereas the stock of Edelweiss Monetary Services rose 2.54% to the day’s high of Rs 298.65 on BSE on Wednesday.
Within minutes of gap from the stock exchange, shares of Religare got bolted in higher circuit with quite 9lakh shares exchanging hands on each BSE and NSE. As way as Edelweiss Financial Services cares, the commercialism volumes were traditional around its average, at 1:30 pm, over 19lakh shares were listed on each BSE and NSE.
Commenting on the announcement, Nitin Jain, CEO, Global Wealth Management, Edelweiss Group, said, “The favorable macro-economic atmosphere, supported by the growing financialization of savings and rising wealthiness, has favourably wedged our wealth management business that has seen over seventieth growth over the last financial. The corresponding nature of Religare’s business to our wealth supervising platform created for a great choice, because it expands our providing and supports our growth plans”.
While on the opposite hand, S. Lakshminarayanan, Executive Chairman of Religare Enterprises restricted, said, “We have had interest from several potential suitors for this business and selected Edelweiss as a result of additionally to having the merchandise palette most fitted for our existing purchasers and partners, they were keen on holding Religare’s work force in its completeness, and this was one among our biggest priorities.”
“The acquisition is subject to receipt of requisite regulative clearances and fulfillment of terms and conditions customary to a dealing of this nature,” Edelweiss Financial Services said in an exceedingly release. Back in 2001, Edelweiss Financial Services procured Rooshnil Securities and later in 2010, it acquired Anagram Capital Ltd.