Last Updated:July 07, 2025, 10:03 IST
Private equity firms like CVC Capital and Permira are vying for PAG’s controlling stake in Nuvama Wealth Management, potentially a $1.6 billion deal
Nuvama wealth share Price
Nuvama Wealth Share Price: Three global private equity buyout firms — CVC Capital Partners, Permira, and EQT — are in advanced discussions with Asia-Pacific-focused investment firm PAG to acquire its controlling stake in Nuvama Wealth Management Ltd, formerly known as Edelweiss Wealth Management. According to a report by The Economic Times on July 7, the potential deal could be valued at around $1.6 billion.
These PE giants are competing alongside HSBC and homegrown investor ChrysCapital to clinch the deal. All five contenders were shortlisted last month following the submission of non-binding bids, the report said.
While News18 has not independently verified the information, the bidding process is reportedly moving into the next stage, with binding offers expected by the end of July.
Nuvama in the Spotlight After Jane Street Fallout
The deal talks come at a time when Nuvama has attracted regulatory attention following SEBI’s interim trading ban on US-based Jane Street, one of its key international trading partners. SEBI alleged market manipulation by Jane Street in the equity derivatives segment.
The fallout led to Nuvama’s stock falling 11% last week — its steepest decline in three months — amid concerns over its business links with the embattled global trading firm.
Will Nuvama Face a Bigger Impact Than BSE?
The regulatory action against Jane Street has triggered debate over broader implications for Indian market intermediaries. According to Jefferies, the impact of SEBI’s move is expected to be uneven across institutions.
While the Bombay Stock Exchange (BSE) is likely to remain largely insulated, Nuvama could face a more pronounced hit. Jefferies noted that Jane Street had already scaled down operations in India in recent months due to the ongoing probe.
Despite Jane Street’s significant presence, proprietary traders dominate India’s equity derivatives market, contributing 60–65% of turnover, compared to just 3–8% by foreign portfolio investors (FPIs).
BSE’s Risk Minimal, Says Jefferies
As for BSE, Jefferies pointed out that although derivatives contribute around 58% of the exchange’s projected FY26 revenue, FPIs only account for 3–4% of that volume. Jane Street’s direct contribution is estimated to be just 1%, making the financial impact on BSE minimal.
Meanwhile, trading activity in options remained relatively robust. On July 4, options premium turnover across exchanges was slightly below the two-month Friday average but higher week-on-week, suggesting that short-term market sentiment remains intact.
As Nuvama prepares to face potential ownership change, the outcome of the Jane Street episode — and its regulatory ramifications — may weigh heavily on investor sentiment in the coming weeks.
Nuvama Wealth shares were trading 3% higher on Monday. On July 4, 2025, the stock had closed 11% lower at Rs 7,261. Over the past three months, it has delivered a return of 28%. Foreign institutional investors (FIIs) have been aggressively buying the stock. Their stake increased from 6.91% in March 2024 to 16.57% in March 2025.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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