Edelweiss completes sale of 10% stake in asset management business to WestBridge

Edelweiss Financial Services Ltd has completed the divestment of a 10% stake in its asset management business to global investment firm WestBridge Capital.

This is part of a broader agreement under which WestBridge is slated to acquire up to 15% stake in Edelweiss Asset Management Ltd for ₹450 crore.

The transaction involved the transfer of shares in Edelweiss Asset Management to WestBridge affiliates, including Setu AIF Trust, Konark Trust, and MMPL Trust, according to a regulatory filing.

The completion of the sale follows a regulatory process that included a 15-day exit window for investors in Edelweiss Mutual Fund and Altiva Specialised Investment Fund, which concluded on 2 December.

WestBridge has over $7 billion in assets under management, which encompasses various investment management companies and investment funds operating both in India and overseas.

Edelweiss Financial transferred 10% of shares of Edelweiss Asset Management and Edelweiss Trusteeship Co. to the Westbridge affiliates on 17 December, and the balance stake of up to 5% will be transferred to the buyers as per the executed agreements, the Rashesh Shah-led firm said in the filing.

India's competition watchdog had approved the deal on 21 October, while the market regulator gave its nod on 12 November. The full transaction is expected to be completed by March 2026, Edelweiss said.

The deal, first announced in August, valued the asset management firm at around ₹3,000 crore. It valued the business at 57 times the price-to-earnings on fiscal year 2025's bottom line of ₹53 crore, which, Edelweiss said, aligned with industry benchmarks of 30-60 times.

For the six months ended September 2025, the mutual fund business contributed ₹45 crore or 23% to Edelweiss Financial's consolidated profit after tax, marking a nearly 10% jump from the previous year's absolute contribution of ₹41 crore.

The business's equity assets under management grew 30% year-on-year in September to ₹77,100 crore, while total AUM stood at ₹1.55 trillion.