Edelweiss to raise $175 mn through IPO

Edelweiss to raise $175 mn through IPO

Mumbai: Edelweiss, the star-shaped European mountain flower that belongs to the sunflower family, is the unofficial national flower of Switzerland.

Nearly 12 years after Rashesh Shah and his partners took inspiration from this Swiss flower to start a namesake investment-banking unit, Edelweiss Capital Ltd, is set to raise about $175 million (Rs687.75 crore) from the Indian capital markets, through its initial public offer (IPO). The issue will be open to subscription starting 15 November. Post its public-float, the firm could value around $1.6 billion, at a conservative estimate.

Apart from being one of the strongest investment-banking team in India, Edelweiss also owns one of the largest domestic institutional equity brokerage businesses in the country. It has more than 14 subsidiaries, including its businesses in insurance and private equity, with investment from Heliconia Pte Ltd, Greater Pacific Capital, Galleon International Ltd, Sequoia Capital, and Lehman Brothers Inc.

Unlike many of its competitors in the equity brokerage business, Edelweiss does not fancy going retail. “The institutional brokerage business is more profitable than retail business considering the cost of manpower and maintenance that goes into the retail business," says Rashesh Shah, managing director and chief executive of the firm.