Day after JP Morgan deal: Edelweiss Financial scrip up 2%
Shares of Edelweiss Financial Services ended with nearly 2 per cent gains as its subsidiary Edelweiss Asset Management announced the acquisition of bigger rival JP Morgan's MF business in India. After rising 3.87 per cent to Rs 60.30 in intra-day trade, shares of the company later trimmed some of the gains on profit-booking and finally ended at Rs 59.10, up 1.81 per cent on BSE.
At NSE, shares of the company rose by 1.71 per cent to settle at Rs 59.15. In terms of volume, 3.26 lakh shares of the company changed hands at BSE and over 14 lakh shares were traded at NSE during the day. Edelweiss Asset Management yesterday announced the acquisition of JP Morgan's mutual fund business in India, which has assets worth over Rs 7,000 crore, making the American fund house 11th foreign major to exit the over Rs 13 lakh-crore industry in the last eight years.
Though the firms did not reveal the deal size, citing confidentiality, market sources said the Wall Street major netted around Rs 110 cr from the deal. Edelweiss will acquire all onshore fund schemes managed by JP Morgan AMC India including country-based onshore MF business and the international fund of funds. Meanwhile, the broader market also depicted a highly volatile trend where the BSE Sensex ended flat at 25,337.56, up 7.07 points.