Edelweiss Financial Services dips 8 per cent

Edelweiss Financial Services tanked more than 12 per cent as the market was rife with news that the company is planning to sell stakes in its wealth management business. The company has been losing ground since its received credit ratings downgrades.

Market was buzzing with news that Edelweiss is planning to sell 20 per cent stake of Edelweiss Wealth Management to a US-based emerging markets investment firm Kora Management for approximately Rs. 2,000 crore. The reports added that the proceeds of the stake sale with help the company meet its debt obligations. Following this the BSE exchange sought clarification from the company citing news reports.

Earlier, the credit rating agency CARE Rating had revised the credit rating of the company's long-term borrowing programmes of the company from CARE AA, with Positive outlook to CARE AA- with a Stable outlook.

Reacting negatively to this development, the stock of Edelweiss Financial Services was trading at Rs. 159.15 per share, down by Rs. 14.95 or 8.59 per cent at 14:59 hours on Wednesday. The stock had hit a low of Rs. 153.00 per share, down by 12 per cent in intraday trade on BSE.