Edelweiss Financial Services Limited (EFSL) has announced that WestBridge Capital is acquiring a 15 per cent stake in Edelweiss Asset Management Limited (EAML), the asset manager of Edelweiss Mutual Fund, for Rs 450 crore.
Edelweiss Mutual Fund (Edelweiss MF) currently manages equity assets under management (AUM) of Rs 72,600 crore, marking a 53 per cent growth over the past five years. The mutual fund business reported a profit after tax (PAT) of Rs 53 crore for the financial year 2025. The transaction values the business at a price-to-earnings (P/E) multiple of 57 times, in line with industry benchmarks ranging from 30 to 60 times.
The transaction is subject to approvals of the Securities and Exchange Board of India, the Competition Commission of India and other customary approvals.
Nomura Financial Advisory and Securities (India) Private Limited acted as the exclusive financial advisor to EFSL. Khaitan & Co. acted as legal advisors to EFSL and Edelweiss MF, and Trilegal acted as legal advisor to WestBridge Capital.
The deal comes at a pivotal time for Edelweiss MF, which has reached a total AUM of Rs 1,52,200 crore as of June 30, 2025, reflecting a compound annual growth rate (CAGR) of 44 per cent over the last five years. In the first quarter of FY26, Edelweiss MF reported a PAT of Rs 28 crore, demonstrating strong momentum and improved operating leverage. Over the past decade, Edelweiss MF has climbed the ranks from 36th to 13th in the mutual fund industry.
Rashesh Shah, Chairman and Managing Director of EFSL, said, “Welcoming WestBridge Capital as a strategic partner is a timely step in the value-creation journey at Edelweiss MF. This transaction reflects confidence in the long-term potential of our mutual fund business and initiates value unlocking for EFSL while strengthening Edelweiss MF’s growth path.”
He added that the company has built a robust, innovation-led mutual fund franchise with strong equity momentum.
Radhika Gupta, Managing Director and CEO of Edelweiss MF, said, “We are delighted to partner with WestBridge Capital, a like-minded and long-term partner whose strategic insights will accelerate our next phase of growth.”
She also highlighted the vast opportunity in the Indian mutual fund industry and expressed confidence in building Edelweiss MF into one of the country’s most admired asset managers.
Deepak Ramineedi, Partner at WestBridge Capital, expressed enthusiasm about the partnership, saying, “We are excited to partner with Edelweiss Mutual Fund at this exciting stage of its growth journey. Under Radhika’s leadership, Edelweiss MF has demonstrated excellent execution with a sharp focus on innovation.”
He further noted that the financialisation of savings is a massive industry tailwind and believes Edelweiss MF is well positioned to benefit from it.
MF is well positioned to benefit from it.
Doonited Affiliated: Syndicate News Hunt
This report has been published as part of an auto-generated syndicated wire feed. Except for the headline, the content has not been modified or edited by Doonited
