Edelweiss Financial Services shares up nearly 5% on FIPB nod

Shares of Edelweiss Financial Services today surged over 4%, after its subsidiary Edelweiss Tokio Life Insurance got necessary approval from FIPB to increase its FDI cap.

The Foreign Investment Promotion Board (FIPB) on Tuesday gave its nod to the proposal of Edelweiss Tokio Life Insurance Co Ltd to increase foreign equity from 26% to 49% of its paid-up capital.

Taking cue of the development, the company's scrip today surged 4.62% to touch Rs 56.60 on BSE, after closing at Rs 54.10 yesterday.

The stock was trading at Rs 55.60, up 2.77% at 1222 hours on BSE.

On NSE, the company's shares opened at Rs 54.05 and gained 4.90% to touch Rs 56.70. It was trading at Rs 55.70, up 3.05% at 1221 hours.

This is the second FDI proposal to come to the insurance space after the government passed a new law allowing 49% foreign holding in the sector. The first FDI proposal was that of Bharti Axa.

Edelweiss Tokio Life Insurance is a joint venture between Edelweiss Financial Services and Japan's Tokio Marine Holdings, which is a global leader with over 135 years of experience in the business.

The Japanese company currently owns 26% stake in the JV.