@Shidharth can you share the source or link for reference, if possible.
23.25 time stamp onwards.
This is the article verifying the information.
Edelweiss Alternatives’ Subahoo Chordia quits, likely to launch own fund - The Economic Times Edelweiss Alternatives’ Subahoo Chordia quits, likely to launch own fund - The Economic Times
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My two cents on generally evaluating company management and leadership changes-
Do I broadly trust the company management and their decision-making?
If yes a leadership change shouldn’t matter.
If on the other hand, I do not trust the company management and/or there has been some material change based on my own judgement (not only because of someone else taking some action), then I shouldn’t wait to exit.
So it all boils down to whether the initial thesis of one’s investing still hold true or not, especially considering the current BFSI business environment… Pabrai or not.
Investment horizons can be very different for different people.
Disc- hold a small position currently.
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I have quite a different view about Edelweiss, I own it since COVID days and subsequently I put a lot of money into it and it’s around 40% of current portfolio value. So I can be not only biased but very biased.
Your and mine perspectives can differ but that management has done a phenomenal job since ILFS crisis. Just have look at their peers DHFL RELIANCE HOME INDIABULLS.
This is not mine but this is Parbai’s thesis that they created many good businesses over the year. It seemed very odd when you look at Alternatives Nuvama and ARC and they are in the top 2-3 businesses in India that’s literally mind blowing when you put it into perspective that Edelweiss was small standalone entity didn’t had Great Parentage of a great institution and family.
Regarding EAAA CEO leaving, I am taking it in very positive light. If your leaders are leaving your business and creating wonderful businesses that means they are being nurtured well at Edelweiss. I have large position in Raymond Reality and they’re doing very well and the guy who created that business for Raymond almost from scratch is Ex Edelweiss executive. Now I wish this guy will do well.
So I don’t worry much about this guy leaving.
I am holding it and going to hold it long, because I am a very big believer cultures don’t change they remain same forever.
If I am right about this culture of giving birth to new businesses and nurturing leaders then I think selling it will be very foolish for me. Your views regarding selling and sustainability and permanence of culture may differ.
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Price Band: A range from a Floor Price of Rs.1,585/- per equity share to a Cap Price of Rs. 1,665/- per equity share.
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Can someone please shed a light on what is the value unlocking for the EFSL shareholders?
The explicit value unlock will be the cash received by the parent company in this OFS of the subsidiary. That will most likely be used to reduce their debt. ₹1,100–1,200 cr of deleveraging should transfer that value to the equity of the company.
This IPO puts the value of EAAA at ~₹11,000 cr at the top end.
With the parent retaining 84% of the stock, that is about ~₹9,000 cr of listed stock on the balance sheet of Edelweiss. This is againt the current market cap of ~₹12,000 cr.
As with other holding companies, the market will apply some discount to the ~₹9,000 cr of EAAA held by Edelweiss. Even so, the market should push the value of Edelwiess up after this listing.
I expect Edelweiss will over time, spin-off or otherwise sell their holding in EAAA, the way they did with Nuvama.
So over time, this entire value of EAAA should accrue to the shareholders of Edelweiss.
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The IPO has closed successfully and the numbers look like this:
EAAA valued at Rs 10,765 cr with a share price of Rs 1,665/-
Edelweiss to receive Rs 1,200 cr and will retain 78.4% of EAAA valued at Rs 8,400 cr.
Current market cap of Edelweiss is Rs 11,965 cr.
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Remaining EFSL stake in EAAA to be approx. 83.88% post listing. It will be interesting to see in coming years, will they sell further stake to bring shareholding till 75% or some other financial engineering will be done.
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Thank you for the correction. I missed the holdings with the promoter group companies. What is the source of this screenshot?
Prospectus->https://www.eaaa.in/wp-content/uploads/2026/10/Prospectus.pdf
Page#124
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