Well-known equity investors Rakesh Jhunjunjhunwala and Mohnish Pabrai have increased their stake in Edelweiss Financial Services during the April-June period. While the big bull – Jhunjhunwala – bought additional 40 lakh shares in the company, Pabrai’s The Pabrai Investment Fund II purchased 10.49 lakh shares.
The latest shareholding data of the financial services firm showed that Jhunjhunwala held 1,51,25,000 shares, or 1.61%, stake in the company as of June 30. He had 1.19% stake in the preceding quarter ended March 31. Likewise, Pabrai’s The Pabrai Investment Fund II increased stake to 1,96,49,000 shares, or 2.10% from 1,86,00,000 shares, or 1.99% stake. Pabrai is an Indian-American businessman, investor, and philanthropist.
Shares of the company traded 8% higher at Rs 93.45 at around 10.50 am (IST) on Monday. On the other hand, the benchmark BSE Sensex traded 0.54% higher at 52,665 at around the same time.
In the recent development, Edelweiss Financial Services on Friday said it will exit the insurance broking business by selling its 70% stake in Edelweiss Gallagher Insurance Brokers Ltd for Rs 307.60 crore.
“The company has entered into an agreement… to divest its entire shareholding (currently 70 per cent) in Edelweiss Gallagher Insurance Brokers Ltd, a subsidiary, engaged in the business of insurance broking to Arthur J Gallagher & Co…,” Edelweiss Financial Services said in a regulatory filing.
Gallagher, who previously held 30% in the business, will now be acquiring all the remaining shares, taking its stake to 100%, the filing added.
The company said, as per the agreement 37,00,000 equity shares of Rs 10 each representing 70% of the paid up share capital of Edelweiss Gallagher Insurance Brokers held by the company to be sold for a consideration of Rs 307.60 crore, in one or more tranches, in the manner as set out in the agreement.
In addition to the sale consideration, Edelweiss Financial Services will also be entitled to receive a deferred contingent consideration based on the future revenue of Edelweiss Gallagher Insurance Broker, in the manner set out in the agreement.
Download Money9 App for the latest updates on Personal Finance.