PAG, an Asian private equity investor, is weighing options including a sale of its $1.2bn (Rs104.5bn) majority stake in Nuvama Wealth Management, a Mumbai-listed company, reported Bloomberg, citing sources.
PAG, backed by Blackstone, is working with financial advisers to conduct a strategic review and evaluate possible outcomes.
Nuvama shares have experienced a 19% decline this year, resulting in a market value of $2.3bn.
Despite this decline, the stock has gained 114% since its listing in September 2023.
The considerations are in preliminary stages, and PAG may ultimately decide against proceeding with a sale, according to sources.
Interest from other financial services firms, including global asset managers, has been noted.
A representative for PAG declined to comment, and Nuvama has not responded to requests for comment during a holiday period in India.
Nuvama offers wealth, asset management, capital markets, and advisory services, catering to entrepreneurs, high-net-worth individuals, and institutional investors.
PAG initially invested about $325m for a controlling stake in Nuvama, formerly Edelweiss Wealth Management, in 2021.
In the third quarter of financial year 2025 (FY25), Nuvama reported Rs7.23bn in revenue, a 30% increase from Rs5.58bn during the same period in financial year 2024.
For the quarter that ended 31 December 2024, operating profit before tax (PBT) surged by 45% to Rs3.34bn, while operating profit after tax (PAT) climbed 43% to Rs2.52bn.
For the nine-month period of FY25, revenues stood at Rs21.3bn, marking a 45% year-on-year (YoY) growth.
Meanwhile, PBT nearly doubled, rising 79% to R9.75bn, and PAT saw a 76% jump to Rs7.31bn.
Announcing the results, Nuvama Group MD and CEO Ashish Kehair said: “India’s structural growth story remains intact; however near-term outlook remains under watch. We continue to focus on our execution. Our priorities remain to scale capacity, strengthen technology, enhance revenue quality, and make efficient use of capital to drive growth for our shareholders.”
“PAG exploring options for majority stake in Nuvama Wealth Management ” was originally created and published by Private Banker International, a GlobalData owned brand.
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