Mumbai: Edelweiss Financial Services Ltd has raised Rs1,527.75 crore from several institutional investors through a qualified institutional placement (QIP), the company said in a statement on Friday.
The QIP is the first by Edelweiss after it went public in December 2007.
QIP is a capital-raising tool through which listed companies can sell equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to institutional investors.
Edelweiss sold 52.56 million shares to investors at a price of Rs280 apiece. The QIP saw subscription from both foreign and domestic institutions.
Institutional investors that bought shares in the QIP included HDFC Mutual Fund, Kotak Mutual Fund, Birla Mutual Fund as well as existing shareholders like Goldman Sachs, Nomura, Fidelity, Steadview, DE Shaw and Co. and Amansa William Blair.
Caisse de Dépôt et Placement du Québec (CDPQ), the second-largest pension fund in Canada, also participated in the QIP.
In October last year, CDPQ entered into a long-term partnership with Edelweiss Financial to invest approximately Rs5,000 crore (nearly $750 million) in stressed assets and specialized corporate credit in India, over the next four years, Mint reported
CDPQ also acquired a 20% equity stake in Edelweiss Asset Reconstruction Co. (EARC).
“We are delighted with the way that our fund raise has been received by marque investors like CDPQ, Fidelity, Goldman Sachs, Nomura, HDFC Mutual Fund, Kotak and Birla MFs. We see this as an endorsement of our business model that uses both capital and talent vectors in growing surely and steadily. Investors in Edelweiss gain exposure to a diversified breadth of businesses serving both retail and corporate customers that ranges from retail and corporate credit, wealth management, asset management, capital markets to insurance," said Rashesh Shah, chairman and managing director of Edelweiss.
The funds raised through the QIP will be utilised by Edelweiss to augment its long-term resources, fund growth and expansion, maintain capital adequacy and consolidation of its subsidiaries.
The Edelweiss Group offers a range of financial products and services which are classified into retail credit, corporate credit, asset management, advisory business and insurance.
With this fundraising, Edelweiss has joined a long list of financial services and banking companies to tap the capital markets using the QIP route this year.
Until October 2017, 27 companies had raised Rs42,610.64 crore through QIPs, according to data from primary market tracker Prime Database.