Nuvama Wealth Management Limited has informed the Exchange about General Updates
NUVAMA · price
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Nuvama Wealth Management Limited has approved an investment of Rs. 100 crore and Rs. 175 (approximately Rs. 100.01 crore) through subscription to a rights issue of its wholly-owned material subsidiary, Nuvama Wealth Finance Limited (NWFL). The investment involves purchasing 11,97,605 equity shares at Rs. 835 per share (Rs. 10 face value + Rs. 825 premium). NWFL is a systemically important non-deposit taking NBFC engaged primarily in lending against securities, with FY25 revenues of Rs. 632.68 crore and net worth of Rs. 900.70 crore. The transaction is at arm's length and is not classified as a related party transaction. The investment is for general business purposes of the subsidiary and is expected to complete within two months. There will be no change in the company's shareholding in NWFL, which remains a wholly-owned subsidiary.
The investment strengthens the capital base of the NBFC subsidiary without affecting ownership structure. It is a routine capital infusion for business growth and should be neutral to mildly positive for Nuvama's shareholders.