Edelweiss Financial Services Limited (EFSL) announced the sale of a significant portion of its stake in its subsidiary, Nido, to a consortium including Carlyle Sardo Investments and Salisbury Investments. The transaction, agreed upon on February 10, 2026, involves selling approximately 45% of the stake. The total consideration includes a mix of upfront payments and potential future payments based on returns. The deal is expected to conclude by July 31, 2026, subject to necessary regulatory approvals.
Details of Strategic Divestment in Nido
Edelweiss Financial Services Limited (EFSL) has entered into agreements to divest its stake in Nido, which is currently held by the company, ERCSL, and EFCL. The transaction involves the sale of equity shares and warrants in Nido to two primary buyers: Carlyle Sardo Investments (an affiliate of The Carlyle Group) and Salisbury Investments Private Limited. The buyers are acquiring a 45% stake in Nido.
Financial Contributions of the Unit
As per the disclosure made for the last financial year ending March 31, 2025, the Nido undertaking contributed significantly to EFSL’s consolidated financials. Its Income accounted for ₹520.63 crores (5.47%), while its Net Worth stood at ₹828.2 crores (13.99%) of the total consolidated financials.
Consideration and Transaction Structure
The total consideration for the sale of equity shares in Nido, as received by the Company, ERCSL, and EFCL, totals ₹60,42,01,200 (Rupees Sixty Crore Forty-Two Lakh One Thousand Two Hundred Only) for the transfer of 3,12,07,500 equity shares.
Specifically, the consideration breakdown is:
- Company (EFSL): ₹19,300 for 100 shares.
- ERCSL: ₹6,02,30,08,900 for 3,12,07,300 shares.
- EFCL: ₹19,300 for 100 shares.
Furthermore, the Sellers may receive an additional payment based upon the returns realized by CA Sardo Investments from its investment in Nido. The Buyers will also subscribe to fresh securities in Nido. The transaction is expected to be completed by July 31, 2026.
Buyer Subscription Details
The transaction involves the Buyers subscribing to fresh equity shares and warrants in Nido. The number of equity shares and warrants being issued to the Buyers are detailed as follows:
- CA Sardo Investments: 25,721,891 equity shares and 51,443,782 warrants.
- Salisbury Investments Private Limited: 184,845 equity shares and 369,690 warrants.
The equity shares are being issued for INR 193 per share, and the warrants are priced at INR 193 per warrant. A total of 25% of the Warrant Issue Price will be payable at the time of subscription of equity shares, with the remaining 75% payable at the time of warrant exercise.
Conclusion of Sale
Upon completion and allotment of these securities, the Buyers are projected to hold approximately 73% of the shareholding of Nido on a fully diluted basis. The transaction is not a related party transaction.
Source: BSE
