The group announced that it has bought back 5.3 per cent from wealth management partner PAG for Rs230 crore ($30.2 million) as part of an agreement last year allowing it to increase its stake by 5 per cent. The move still leaves Asian investment firm PAG as the majority shareholder in EWM with a 55.84 per cent stake, a number of press reports said. 

"We bought back 5.28 per cent at the same price of what they paid us last year, and it works out to be close to Rs230 crore," Rashesh Shah, chairman, Edelweiss, said.

“With a significant growth runway visible for wealth management in India, we are excited to invest in this business which has a proven track record and fuels the expansion of its market dominance. All our businesses are well-capitalised and we look forward to investing in the opportunities that exist as the economy emerges out of the pandemic. Our focus will continue to be on enhancing the value of the franchise and unlocking this value for the shareholders.”

The group, which has assets under management of Rs1.81 crore, plans to demerge its wealth management arm by June 2022 and unlock its value by taking it public by October 2022.

India’s expanding wealth management sector, valued at Rs300 trillion, is on an annual growth trajectory of 12.5 per cent and is expected to scale Rs540 trillion in the next five years.