 "Edelweiss Financial surges 12% as CDPQ to invest Rs 1,800 crore in NBFC arm")
Shares of Edelweiss Financial Services surged 12 per cent to Rs 173 apiece on the BSE in early morning trade, extending its previous day’s 10 per cent gain after the company said Canadian fund plans to invest about Rs 1,800 crore in ECL Finance.
Canadian pension fund manager CDPQ has signed an agreement to invest over Rs 1,800 crore (approximately US$250 million) in ECL Finance, the non-banking financial company (NBFC) arm of Edelweiss Group. The planned investment by CDPQ would contribute towards establishing a large and diversified credit platform in India. This proposed investment will close after customary regulatory approvals, the company said in a press release.
CDPQ will now help with a long-term strategy to build a strong credit portfolio. The focus will be on the retail segment, said the statement. With new funds, ECL will be able to capitalise on opportunities in the credit market over the next three-four years, it added.
This new investment capitalises on solid growth in the financing demand from SMEs and residential sectors, both of which being key drivers in sustaining India’s future growth, said Michael Sabia, President and Chief Executive Officer at Caisse de depot et placement du Quebec (CDPQ).
At 10:18 am, Edelweiss Financial Services was up 7 per cent at Rs 165 on the BSE. In comparison, the S&P BSE Sensex was up 0.31 per cent at 36,557 levels. A combined 4.8 million equity shares changed hands on the counter on the NSE and BSE so far.
Canadian pension fund manager CDPQ has signed an agreement to invest over Rs 1,800 crore (approximately US$250 million) in ECL Finance, the non-banking financial company (NBFC) arm of Edelweiss Group. The planned investment by CDPQ would contribute towards establishing a large and diversified credit platform in India. This proposed investment will close after customary regulatory approvals, the company said in a press release.
CDPQ will now help with a long-term strategy to build a strong credit portfolio. The focus will be on the retail segment, said the statement. With new funds, ECL will be able to capitalise on opportunities in the credit market over the next three-four years, it added.
This new investment capitalises on solid growth in the financing demand from SMEs and residential sectors, both of which being key drivers in sustaining India’s future growth, said Michael Sabia, President and Chief Executive Officer at Caisse de depot et placement du Quebec (CDPQ).
At 10:18 am, Edelweiss Financial Services was up 7 per cent at Rs 165 on the BSE. In comparison, the S&P BSE Sensex was up 0.31 per cent at 36,557 levels. A combined 4.8 million equity shares changed hands on the counter on the NSE and BSE so far.
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