Edelweiss Financial Services Ltd

Edelweiss Financial Services Limited (EFSL), erstwhile Edelweiss Capital Limited (ECL), provides a broad range of financial products and services to diversified client base that includes corporations, institutions and individuals. Edelweiss's products and services span multiple asset classes and consumer segments across domestic and global geographies. Its businesses are broadly divided into Credit Business, Franchise & Advisory Business and Insurance. The Retail Credit business comprises of Retail Mortgage, SME and Business Loans, Loan against Securities, Agri and Rural Finance. The Corporate Credit business comprises of Structured Collateralised Credit to Corporates and Wholesale Mortgages, and Distressed Credit. The Franchise & Advisory Business includes Wealth Management, Asset Management and Capital Markets. Edelweiss' Balance Sheet Management Unit operations manage the liquidity and Balance Sheet. The Insurance business includes life and general insurance. The life insurance business is carried through a joint venture company Edelweiss Tokio Life Insurance where Edelweiss Financial Services owns 51% and Tokio Marine owns the balance 49%. Tokio Marine Holdings Inc., is one of the oldest and largest insurance companies in Japan. The Edelweiss group has sizeable presence in large retail segment through its businesses such as Life Insurance, Housing Finance, Mutual Fund and Retail Financial Markets. It serves around 12 lac strong client base through 10,052 employees based out of 448 offices. Together with strong network of Sub-Brokers and Authorized Persons, Edelweiss group has presence across all major cities in India. Edelweiss Capital Limited (ECL) was conceived as a public limited company on 11th November 1995. Now the company is one of India's fastest growing integrated investment banking companies. The Group's services include investment banking, institutional equities, private client broking, asset management, wealth management, insurance broking, wholesale financing and mutual funds. ECL has built strong corporate, institutional and investor relationships backed by a research-driven approach and a proven ability to capitalize on emerging market trends. The Company had received its certificate for commencement of business on 16th January of the year 1996. As at March of the year 2000, ECL had acquired Crossborder Investments Private Limited and it became as subsidiary. The Company obtained the Futures & Options license in the year 2001. Edelweiss Securities Limited formerly known as Rooshnil Securities Private Limited was acquired in July of the year 2002; this also converted as subsidiary of the company. In the same year of 2002, the Crossborder Investments Private Limited was registered as a Non Banking Financial Company. The year 2004 witnessed the foray of the company into the businesses of commodity broking and in the year 2005 entered into insurance advisory business. ECL Finance Limited was incorporated in the year 2005 under the control of the company. During the year 2006, the company made NBFC registration of ECL Finance Limited and managed the first Qualified Institutional Placement under the new regulatory framework in India. Edelweiss Real Estate Advisors Private Limited was also incorporated in the identical year of 2006 and the Edelcap Securities and Transaction Services Private Limited which was earlier Tiffin Investments Private Limited were acquired in December of the same year 2006. The Initial Public Offering of the company was successfully issued in the year 2007 with the tune of 691.86 crore. During the year same year 2007, ECL had obtained the Clearing Member License. As of May 2008, the company had received final regulatory approval from the Securities & Exchange Board of India (SEBI) to start its mutual fund business. Edelweiss Liquid Fund & Edelweiss Liquid Plus Fund was launched through its asset management company in September of the year 2008. On 16 October 2009, Edelweiss Capital announced that Edelweiss Asset Reconstruction Company Limited, an associate of the company has received the certificate of registration from the Reserve Bank of India to commence/carry on the business of securitisation or asset reconstruction. On 23 November 2009, Edelweiss Capital announced that it has executed the joint venture agreement with Tokio Marine Holdings Inc., to carry on the life insurance business in India through a subsidiary of the company. On 27 January 2010, Edelweiss Capital announced that it has entered into an agreement to acquire Anagram Capital for Rs 164 crore in an all cash transaction. With a nation-wide network of more than 137 branches and over 1300 sub brokers, Anagram has one of the widest geographical reach among retail broking firms. The company has more than 180,000 clients and estimated total revenues of Rs 100 crore for the nine months ended 31 December 2009. The company's average daily equity trading volume is approximately Rs 800 crore. On 29 March 2010, Edelweiss Capital announced that its wholly owned subsidiary Edelweiss Housing Finance Limited has received the certificate of registration from the National Housing Bank to commence/carry on the business of a housing finance institution. On 24 June 2010, Edelweiss Capital announced that its Board of Directors has approved a stock split of the face value of Rs 5 each into Rs 1 each, at a meeting held on 24 June 2010. The Board also recommended issue of bonus shares in the ratio 1:1. On 19 July 2010, Edelweiss Capital announced that Edelweiss Securities Ltd. and Edelweiss Investments & Finance Ltd., the subsidiaries of the company, have completed the acquisition of 100% of the paid-up share capital of Anagram Capital Limited. Consequently, Anagram Capital Limited has become a subsidiary of the company. On 11 January 2010, Edelweiss Tokio Life Insurance Company Limited announced that it has received the initial R1 approval from the Insurance Regulatory & Development Authority (IRDA). This is the first step of regulatory clearances required for carrying on the business as Life Insurance company in India. The Ministry of Corporate Affairs accorded its approval for change in the name of the company from Edelweiss Capital Limited to Edelweiss Financial Services Limited with effect from 1 August 2011. On 30 January 2012, Edelweiss Financial Services Limited announced that its subsidiary EAAA LLC, Mauritius and Japan's SBI Holdings, Inc. (SBIH) have signed a definitive agreement to jointly sponsor an Alternative asset management fund called EW SBIH Crossover Fund in Mauritius, focused on investments in small/mid-cap listed companies in India. The sponsors' total commitment to the fund will be USD 100 million, of which SBIH's commitment is 75% and Edelweiss' commitment is 25%. SBIH incorporated in Japan by Yoshitaka Kitao in 1999, has established a globally unique Internet-based financial conglomerate model with businesses spanning investment and the entire financial services space, such as securities, banking and insurance, and across Asian countries and other geographies like Russia, Middle East and Africa. On 3 February 2012, Edelweiss Financial Services Limited announced that pursuant to the approval from the shareholders of the company and the Securities and Exchange Board of India, the portfolio management services business of the company has been transferred to Edelweiss Global Wealth Management Limited, a wholly owned subsidiary of the company, with effect from 2 February 2012. On 1 August 2013, Edelweiss Financial Services Limited informed the stock exchanges that the company and/or its subsidiaries, do not have any position, whatsoever, on National Spot Exchange Limited. On 27 November 2013, Edelweiss Financial Services announced that the Board of Directors of the company, has subject to the approval of the shareholders, increased the limits of Foreign Institutional Investors (FIIs) holding in the equity share capital of the company from 24% to 28%. The Board of Directors of Edelweiss Financial Services at its meeting held on 23 April 2014 approved the buy-back of the company's equity shares of Re. 1 each. The buy-back will be made from the open market through stock exchanges, at a price not exceeding Rs 45 per equity share and for aggregate amount not exceeding Rs 135 crore. On 1 May 2014, Edelweiss Financial Services announced the acquisition of Mumbai based Forefront Capital Management Pvt. Ltd, a high net worth focused Asset Management Company that spans the alternative as well as the traditional investment space. Forefront will now be part of the Edelweiss Group and this will further strengthen and diversify Edelweiss's presence in the asset management space. Forefront currently manages a wide array of investments focused on the absolute return space, from value oriented equity strategies to multi-asset allocation strategies and has developed deep expertise in the full spectrum of India focused asset management - research, advisory, investments and trade execution. Distributed by leading banks, wealth management houses and IFAs, it caters to close to 200 clients across 12 cities that include corporate treasuries, promoters, CXOs, and prominent single family offices. On 26 November 2015, Edelweiss Group announced that it has entered into a partnership agreement with Sun Global Investments, a leading boutique Investment Manager headquartered in London, to offer full service solutions in INR Fixed Income markets - both Primary and Secondary, as well as USD denominated Indian debt across UK, Europe & Asia. This alliance brings together Edelweiss Group's onshore capabilities which include primary issuances, comprehensive domestic counterparty access for secondary market trading and fixed income/ macroeconomic research with that of Sun Global's International presence and Investor coverage coupled with a flexible, dynamic Fund construct. On 28 January 2016, Edelweiss Tokio Life Insurance Ltd. announced that it has received IRDAI approval to increase Tokio Marine's stake to 49%. This will be a primary investment by Tokio Marine in the joint venture, a first within the Life insurance space. The increase in Tokio Marine's stake will lead to a foreign direct investment of over Rs 525 crore. Tokio Marine currently owns 26% in Edelweiss Tokio Life Insurance, with Edelweiss owning the remainder. On 22 March 2016, Edelweiss Asset Management Limited (EAML), a wholly owned subsidiary of Edelweiss Financial Services Limited (EFSL), announced that it has executed an agreement to acquire the onshore fund schemes managed by JP Morgan Asset Management India Private Limited (JPMAM), including its India based onshore mutual fund business and the international fund of funds, subject to regulatory approvals. The assets under management (AUM) of JPMAM stands at approximately Rs 7081 crore, while the combined AUMs of both entities amount to approximately Rs 8757 crore (as on 31 December 2015). Along with the schemes, EAML is committed to absorbing majority of employees of JPMAM ensuring business continuity as well as a platform for enhanced growth across the Edelweiss Group. On 22 September 2016, Edelweiss and Ambit announced that an Edelweiss group entity has agreed to acquire Ambit Alpha Fund, a category III Alternate Investment Fund with an AUM of over Rs 1100 crore, and will be its new investment manager. The transaction is subject to due diligence and requisite regulatory approvals. The acquisition will further strengthen Edelweiss Group's Rs 35000 crore Global Assets Management (GAM) business which includes the Group's existing mutual funds, alternative assets management, multi strategy funds and asset reconstruction. On 3 October 2016, Caisse de dpt et placement du Qubec (CDPQ), one of North America's largest pension fund managers, announced a long-term partnership agreement with Edelweiss Group. The agreement includes target investments by CDPQ of Rs 5000 crore over four years that will provide Edelweiss Group with capital to invest in stressed assets and private debt opportunities in India. This platform will invest in assets with the aim of restructuring debt and turning around companies, as well as becoming the provider of financing to Indian entrepreneurs and companies. These investments, to be carried out by Edelweiss Asset Reconstruction Company (EARC) and through different Edelweiss funds, will result in the purchase of non-performing loans from Indian banks and investments in private debt of growing Indian companies. CDPQ will also be acquiring a 20% equity stake in Edelweiss Asset Reconstruction Company (EARC). On 25 October 2016, ECL Finance Limited, a subsidiary of Edelweiss Financial Services Limited (EFSL), announced that it has priced its debut overseas issue of INR denominated USD settled notes (also commonly known as masala bonds) aggregating to Rs 502 crore (US$75 million equivalent in INR). The bonds are proposed to be dual listed on the Singapore Stock Exchange and the Stock Exchange of Mauritius. The issue proceeds would be used for repayment of existing debts, supporting growth and other general corporate purposes as permitted under the applicable RBI guidelines. On 17 November 2016, Edelweiss Financial Services Limited (EFSL) announced that its wholly owned subsidiary Edel Commodities Limited (ECL) has entered into a Share Sale & Purchase Agreement with Inditrade Business Consultants (IBCL) for the sale of its wholly owned subsidiary namely Edel Commodities Trading Limited (ECTL) for a deal size of minimum of Rs 13 crore receivable in cash and shares. Post the transaction, ECTL, Edelweiss Commodities CHAD SARL and Edelweiss Commodities Nigeria Limited, the subsidiaries of ECTL, cease to be the subsidiaries of ECL and, in turn EFSL. On 28 November 2016, Edelweiss Financial Services Limited (EFSL) announced that Edelweiss Asset Management Company Limited, a wholly owned subsidiary of the company, has on 25 November 2016, after obtaining the necessary regulatory approvals, completed the acquisition of the onshore fund schemes managed by JP Morgan Assets Management India Private Limited including its India based onshore mutual fund business and international fund of funds. On 7 June 2017, ECL Finance Limited, a subsidiary of Edelweiss Financial Services Limited (EFSL), announced that it has issued unsecured non-convertible subordinated perpetual bonds in the nature of debentures aggregating to Rs 300 crore to further strengthen the company's Capital Adequacy Ratio which stood at 16.14% as on 31 March 2017. On 19 September 2017, Edelweiss Financial Services Limited (EFSL) informed the stock exchanges that ECL Finance Limited, hitherto a subsidiary with 92.2% holding of EFSL, has become a wholly owned subsidiary of the company. On 23 November 2017, Edelweiss Financial Services Limited (EFSL) raised Rs 1527.75 crore through the Qualified Institutions Placement (QIP) route. The QIP opened on 15 November 2017 and closed on 20 November 20, 2017. This was the first equity fund raise by EFSL since its IPO in December 2007. The QIP was priced at Rs 280 per equity Share, a discount of 1.8% or Rs 5.14, to the QIP floor price of Rs 285.14 per share. The QIP saw subscription from foreign as well as domestic QIBs. In particular, Caisse de Dpt et Placement du Qubec (CDPQ), the second-largest pension fund in Canada, has used the opportunity to get a stake in EFSL. On 30 November 2017, Edelweiss Tokio Life Insurance announced it has received equity capital infusion of Rs 670 crore from Edelweiss Financial Services Ltd. and Tokio Marine Holdings Inc. This capital infusion will support the company's expansion plans, and in particular, the development of its Bancassurance channel. On 6 December 2017, Edelweiss Financial Services Limited announced that EFSL Comtrade Limited (EFSL Comtrade), a wholly owned subsidiary of the company, has concluded the transaction with fulfillment of the conditions precedent pursuant to the Share Sale & Purchase Agreement executed with Searock International Pvt Ltd. (SIPL) on 5 September 2017, for sale of its wholly owned subsidiary in Singapore namely Cross Border Synergy Pte. Ltd. (formerly Edelweiss Commodities Pte. Ltd.) for a consideration of Rs 8.47 crore. Post the transaction, Cross Border Synergy Pte. Ltd ceases to be a subsidiary of EFSL Comtrade, and in turn of Edelweiss Financial Services Limited. On 27 December 2017, Edelweiss Financial Services Limited announced that the Insurance Regulatory & Development Authority of India (IRDAI) has granted its approval and has registered 'Edelweiss General Insurance Company Limited', a wholly owned subsidiary of the company, to commence its business in General and Health Insurance in India. On 16 March 2018, Edelweiss Financial Services Limited announced that due to the seller's inability to obtain the required clearances within the agreed timeline, the binding agreement for the acquisition of Religare's securities business has come to an on 15 March 2018. Earlier, on 20 December 2017, Edelweiss had announced that the acquisition of Religare's securities business by Edelweiss Wealth Management for about Rs 250 crore subject to required regulatory clearances and fulfillment of the terms and conditions. During the year 2019-20, Edelweiss Holdings Limited, Alternative Investment Market Advisors Private Limited and Edelweiss Trustee Services Limited ceased to be subsidiaries of the Company with effect from November 29, 2019, consequent to their merger with ECap Equities Limited, a wholly owned subsidiary of the Company. Edelweiss Securities Trading and Management Private Limited merged with Edelweiss Securities and Investments Private Limited and consequently ceased to be a subsidiary w.e.f. November 29, 2019. With effect from November 12, 2019, EW India Special Asset Advisors LLC, was dissolved and ceased to be a subsidiary. ESL Securities Limited was incorporated on October 1, 2019 as a subsidiary of the Company. During the year ended March 31, 2021, the Company sold its controlling stake in the wealth management business to PAGAC Ecstasy Pte. Ltd., with effect from March 26, 2021. Consequently, Edelweiss Securities Limited, Edelweiss Finance & Investments Limited, Edelweiss Broking Limited, Edelweiss Custodial Services Limited, ESL Securities Limited, Edelweiss Securities (Hong Kong) Private Limited, Edelweiss Investment Advisors Pte. Limited, Edelweiss Financial Services Inc., Edelweiss Financial Services (UK) Limited and Edelweiss Securities (IFSC) Limited, ceased to be the subsidiaries and became the associates of the Company. During the year 2020-21, EFSL International Limited was dissolved and ceased to be the subsidiary with effect from April 28, 2020. EC Global Limited (ECG) amalgamated with EC International Limited with effect from September 1, 2020 and consequently ECG ceased to be the subsidiary of the Company. On September 1, 2020, Edel Land Limited (ELL) acquired Everest Securities & Finance Limited (Everest), thus Everest became the subsidiary of the Company. Further, Everest merged with ELL with effect from May 26, 2021. Edelweiss Finvest Limited (EFL) was merged with Edel Finance Company Limited with effect from April 9, 2021 and consequently EFL ceased to be the subsidiary of the Company. Lichen Metals Private Limited ceased to be the subsidiary of ECap Equities Limited and, in turn of the Company with effect from March 31, 2021. Edelweiss Capital Services Limited was incorporated on February 12, 2021 as the subsidiary of the Company. During the year ended March 31, 2022, the Company divested stake in Gallagher Insurance Brokers Private Limited (GIBPL). Consequently, GIBPL ceased to be a subsidiary of the Company w.e.f. October 18, 2021. During the year 2021-22, Edelweiss Capital Singapore Pte. Ltd. and Aster Commodities DMCC were dissolved and ceased to be the subsidiaries of the Company. During the year 2021-22, Edelweiss Real Assets Managers Limited and Sekura India Management Limited were incorporated on June 25, 2021 and June 29, 2021, respectively, as subsidiaries of the Company. The Board at its meeting held on May 13, 2022 approved the Scheme of Arrangement between the Company and Edelweiss Securities Limited (ESL/Resulting Company) and their respective shareholders and creditors, which inter alia provides for demerger, transfer and vesting of the Demerged Undertaking from the Company into the Resulting Company on a going concern basis. The equity shareholders of the Company will receive the equity shares of ESL in the manner as provided in the Scheme. Read More