Business

Edelweiss to sell 20% stake to Kora Management, says report

Updated : July 17, 2019 10:26 AM IST

The current development comes after NBFCs across the economy is are facing severe stress due to tight financial conditions.

NBFCs have been hit hard by prolonged slowdown in the real estate industry coupled with the liquidity crunch in the overall market.

Edelweiss to sell 20% stake to Kora Management, says report

Edelweiss Wealth Management is likely to sell a 20 percent stake to US-based Kora Management for Rs 2000 crore, reported The Economic Times, citing sources close to the development.

The proceeds from the sales will help in meeting debt obligations during this quarter, a source told ET. The wealth management firm, the report said, has debt obligations of Rs 6,500 crore in comparison to the expected inflow of Rs 3,600 crore.

The company, the report added, provides advisory distribution, broking and asset services, ESOP & margin funding. And now it is planning to focus on scaling its wealth management services in 2020, especially for the affluent business.

The current development comes, the report said, after NBFCs across the economy is are facing severe stress due to tight financial conditions. They, the report added, have been hit hard by the prolonged slowdown in the real estate industry coupled with the liquidity crunch in the overall market.

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