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Edelweiss Financial rises after CCI OKs Sanaka's investment in unit

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The Competition Commission of India (CCI) approved Sanaka Growth SPV I's investment in Edelweiss Securities (ESL).

The proposed combination relates to investment by Sanaka in ESL and Edelweiss Global Investment Advisory Business (EGIA) subsidiaries of up to INR equivalent to $44 million, the CCI said in release.

Shares of Edelweiss Financial Services rose 2.41% at Rs 118.90. It traded in the range of Rs 118.60 and Rs 122.90 so far during the day.

Sanaka is duly incorporated under the laws of Mauritius. Its principal activity is that of investment holding and related activities with the objective to achieve long term capital appreciation.

The target entities belong to the Edelweiss Group, with Edelweiss Financial Services as the ultimate holding company, are broadly engaged in the Edelweiss Global Investment Advisory business.

Edelweiss Financial Services's consolidated net profit fell 81.2% to Rs 51.17 crore on 10.1% decline in total income to Rs 2,405.24 crore in Q2 September 2019 over Q2 September 2018.

Edelweiss Financial Services is engaged in providing investment banking and advisory services, and holding activities/investments. The firm's segments include agency business, capital based business and life insurance.

Over the past one month, the stock witnessed some correction after a stellar rally. The stock corrected by 13.58% from its close of Rs 129.15 registered on 15 November 2019 to end at Rs 111.60 on 11 December 2019. It has, however, recovered 6.54% from its recent low.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 16 2019. 10:12 IST