The Edelweiss founder has drawn up an ambitious plan to pare the company's debt. But the lofty valuations of the assets on offer may be hard to justify.
Edelweiss Financial Services, the financial services arm of the over two-decade-old group founded by Rashesh Shah, is going for a big sale of its assets in an attempt to raise around Rs 8,000 crore and pare its mountain of debt, which currently stands at over three times its net worth.
The sale includes a 14% stake in its wealth management business (Edelweiss Wealth Management) and a complete or partial exit from the life insurance (Edelweiss Tokio Life Insurance) and housing finance (Edelweiss Housing Finance) businesses. Besides, the company has put some of its corporate and treasury assets on the block …
Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.
Editor, Banking
furquan@mailtmc.com
Delhi