Mumbai: Emkay Global Financial Services Ltd announced on Wednesday a strategic divestment of its entire equity investment in two wholly-owned subsidiaries, Emkay Investment Managers Limited (EIML) and Emkay Wealth Advisory Limited (EWAL), to its newly incorporated wholly-owned subsidiary, Emkay Capital Private Limited (ECPL).
Divestment Details
Emkay Global will transfer 100 per cent of its stake in EIML, comprising 90 lakh equity shares, to ECPL for a cash consideration of ₹21.375 crore. Additionally, the company will transfer its 100 per cent stake in EWAL, consisting of 41 lakh equity shares, to ECPL for ₹2.05 crore.
Financial Impact of Divestments
For the financial year ended 31 March 2026, EIML reported an income of ₹28.7146 crore, accounting for 7.25 per cent of Emkay Global's consolidated income. Its net worth stood at ₹21.5758 crore, or 5.67 per cent of the consolidated net worth. EWAL reported an income of ₹0.3608 crore (0.09 per cent of consolidated income) and a net worth of ₹1.2071 crore (0.32 per cent of consolidated net worth) for the same period.
Wealth Management Business Transfer
Emkay Global will also transfer its Wealth Management Business to EWAL through a slump sale under a Business Transfer Agreement (BTA). The consideration for this slump sale is ₹2.75 crore.
Investment in ECPL
The company has approved an investment of up to ₹30 crore in the equity shares of ECPL through a rights issue. ECPL, incorporated on 24 August 2026, is a wholly-owned subsidiary engaged in investing, acquiring, and trading in various securities and investment interests. The funds will be used to effect the aforementioned transactions and for other business purposes.
Related Party Transactions
The divestment transactions are classified as related party transactions but are being conducted at arm's length. The transfer of the Wealth Management Business to EWAL is also considered a related party transaction, executed on an arm's length basis.
Execution Timeline
The Share Purchase Agreements for the divestments are expected to be executed by 4 November 2026, with completion anticipated within 90 days. The Business Transfer Agreement is also expected to be executed by 4 November 2026, with the slump sale to EWAL to be completed within 90 days.
Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.
