Edelweiss keen to acquire MF companies, retail brokers and more

Posted By: Religare
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Edelweiss keen to acquire MF companies, retail brokers etc
These days the stock broking upheld Edelweiss seems to be putting its money into every potential field it comes across. After venturing with a life insurance firm, the group is now ready to acquire businesses in retail broking as well as mutual funds.

Though a specific target has not been mentioned to the sources, the company is looking to touch base with a client support of 50,000 to 1,00,000 for their retail brokerage.

Officials from the company board even went ahead to suggest a new name for Edelweiss Capital to be Edelweiss Financial Services which would cater to their key areas of growth which in their opinion include Housing Finance, capital market, fund management services, asset management and insurance covers.

Edelweiss Tokio Life, the insurance arm of this group in the meantime has received IRDA clearance last week and is expected to enrol in business from July 2011. At present, Edelweiss Capital is awaiting the guidelines to be out by Reserve Bank of India regarding new licenses to revise entries in the area of banking where their next business interest lies.

On the flip side, this rapid expansion drive of Edelweiss is costing them pools of investment in each of its subsidies rounded off to a net Rs. 50 crore by the company officials itself. As a consequence, the group is rowing on a neap tide with profits declining by 17.22% in the last evaluated quarter.

Read more about: edelweiss capital, acquisition, bse, nse
Story first published: Wednesday, May 18, 2011, 9:30 [IST]
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