Edelweiss Financial shares gain 4% on rival JP Morgan MF deal

Shares of Edelweiss Financial Services rose by nearly 4% as its subsidiary Edelweiss Asset Management announced the acquisition of bigger rival JP Morgan's mutual fund business in India. The stock climbed 3.87% to Rs 60.30 on BSE. At NSE, shares of the company went up 3.86% to Rs 60.40.

At 1337 hours, the company's shares were down from the day's high but still trading above the red line at Rs 59.60, up Rs 1.55 or 2.67% higher. 

At the time, the benchmark Sensex was at 25,258.10, down 79.48 or 0.31% lower. 

Edelweiss Asset Management on Tuesday announced the acquisition of JP Morgan's mutual fund business in India, which has assets worth over Rs 7,000 crore, making the American fund house 11th foreign major to exit the over Rs 13 lakh-crore industry in the last eight years.

Though the companies did not reveal the deal size, citing confidentiality, market sources said the Wall Street major netted around Rs 110 crore from the deal.

Edelweiss will acquire all onshore fund schemes managed by JP Morgan AMC India including country-based onshore mutual fund business and the international fund of funds.