FTSE to delete Nuvama Wealth from Global Smallcap Index from July 5; here’s why

economictimes.indiatimes.com:

Nuvama Wealth Management will be deleted from the FTSE Global Smallcap index, effective July 5, FTSE Russell said in a release. Pursuant to its demerger from Edelweiss Financial Services, Nuvama Wealth Management shares have not started trading on the bourses, and there is no intimation on the commencement of trading date. Therefore, the global index aggregator decided to remove the company from the smallcap index.

In May, Edelweiss Financial Services received approval from the National Company Law Tribunal for the demerger of Nuvama Wealth Management. The company had said it hopes to complete the demerger by the end of June if the tribunal’s order is in place. In April, Nuvama Wealth’s Managing Director and Chief Executive Officer Ashish Kehair had said the company plans to get listed on the stock exchanges by August.

But there is no definite date shared by the company yet. On Friday, shares of Edelweiss Financial Services ended 0.2% up at Rs 49.80 on the National Stock Exchange. In terms of business prospects, Nuvama aims to triple both its client assets and client base by 2028.

Over the last five years, the company has grown its client assets at a compounded annual growth rate of 27%. Nuvama is currently servicing more than 1 million affluent individuals and high networth individuals and about 3,000 of India's wealthiest families. The company offers a complete suite of wealth management solutions, including investment management and advisory, estate planning, lending against securities, exchange traded products, equity and debt capital markets, and M&A advisory.