Nuvama Wealth Impressive trading debut on NSE
In a remarkable trading debut, Nuvama Wealth Management, the latest entrant in the realm of pure-play listed wealth management firms, has captured the market’s attention. This notable event puts Nuvama Wealth alongside renowned industry players like 360 One WAM and Anand Rathi Wealth.
As the trading dust settled on Tuesday, Nuvama’s shares, which had recently spun off from Edelweiss Financial Services, concluded at an impressive Rs 2,612.5 on the National Stock Exchange (NSE). This closing price valued the company at an impressive Rs 9,163 crore. However, it’s worth noting that the fair value discovery process might take a few more trading sessions, as the stock experienced a 5% limit-down circuit breaker after only a handful of trades.
Nuvama Wealth, promoted by the private equity powerhouse PAG, boasts a diverse portfolio, including wealth management, asset management, and capital market services. With assets under management (AUM) totaling a substantial Rs 2.5 trillion, the company delivered a strong financial performance in FY23, reporting a net profit of Rs 1,575 crore and a net profit of Rs 368 crore (excluding certain non-recurring expenses).
The company has set its sights on an ambitious goal of doubling its bottom line over the next three years. This growth strategy is underpinned by the increasing number of affluent individuals in India and their growing appetite for sophisticated investment solutions.
India’s high net worth individual (HNI) population, comprising individuals with assets exceeding $1 million, is projected to witness an annualized growth rate of 12% and reach 1.41 million by 2026. This surge in HNI numbers is expected to drive the wealth management industry’s annualized growth to a robust 12-15% over the next five years. Moreover, a significant number of HNIs who currently seek advice from informal sources are likely to transition to established, organized players in the industry.
In light of these promising trends, private equity investors have shown substantial interest in the wealth management sector, making it a focal point for investment and growth. The future appears bright for Nuvama Wealth as it embarks on its journey to serve the burgeoning demand for wealth management solutions among India’s affluent population.
About Nuvama Wealth:
Nuvama Wealth and Investment Limited, previously operating under the name Edelweiss Broking Limited, is a prominent Indian financial services firm headquartered in Mumbai, India. It functions as a subsidiary of Nuvama Wealth Management Limited, formerly known as Edelweiss Securities Limited. Rahul Jain serves as the President of the company.
For more of the Latest News, Click Here