Edelweiss Financial Services has underperformed Nifty. It’s down about 9.7 percent when compared to Nifty’s gain of more than 1 percent. The monthly movement is also on the weaker side. The stock has underperformed or is down 8.3 percent when compared to Nifty gain of 1.1 percent.
However, what is keeping the stock under pressure? As per news reports, Ministry of Corporate Affairs (MCA) has ordered inspection of Edelweiss’ subsidiary book – that’s the asset reconstruction company (ARC) business. The allegation over there is that there is Rs 1,800 crore of funding from CDPQ which has been diverted.
Edelweiss has responded to that denying the allegation. However, the stock has remained under pressure.
For more details, watch the video.