Target Entities:

  • Emkay Investment Managers Limited (EIML)
  • Emkay Wealth Advisory Limited (EWAL)
  • Wealth Management Business of Emkay Global Financial Services Limited

Type of Deal:

  • 100% acquisition of subsidiary companies
  • Slump sale of business division
  • Investment in wholly owned subsidiary

Stake/Capacity:

  • 100% stake in EIML (90,00,000 equity shares)
  • 100% stake in EWAL (41,00,000 equity shares)
  • Entire Wealth Management Business including distribution business, referral business and other relevant business activities

Deal Value:

  • EIML acquisition: Rs. 21.375 Crores cash consideration
  • EWAL acquisition: Rs. 2.05 Crores cash consideration
  • Wealth Management Business slump sale: Rs. 2.75 Crores
  • Total transaction value: Rs. 26.175 Crores

Funding Source:

  • Investment of up to Rs. 30 Crores in ECPL by way of subscription to Rights Issue of Equity Shares
  • Proceeds to be utilized for giving effect to the transactions and other business purposes

Financial Impact:

EIML Financials (as of 31st March 2026):

  • Income: Rs. 28.7146 Crores (7.25% of consolidated income)
  • Net Worth: Rs. 21.5758 Crores (5.67% of consolidated net worth)

EWAL Financials (as of 31st March 2026):

  • Income: Rs. 0.3608 Crores (0.09% of consolidated income)
  • Net Worth: Rs. 1.2071 Crores (0.32% of consolidated net worth)

Wealth Management Business Financials:

  • Revenue: Rs. 24.2366 Crores (6.12% of consolidated income for FY ended 31st March 2026)
  • Net worth not separately identifiable as it's part of overall business operations

Timeline:

  • Share Purchase Agreement expected to be executed on or before 4th November, 2026
  • Business Transfer Agreement expected to be executed on or before 4th November, 2026
  • Completion expected within 90 days from agreement execution
  • Subject to regulatory approvals and procedural compliances

Strategic Rationale:

  • Part of the Company's broader business re-organisation and operational restructuring initiatives
  • Optimise deployment of resources
  • Enable greater strategic and operational focus through appropriate business structure
  • Housing Wealth Management vertical under a new company structure

Approval Status:

  • Board approved on 28th October 2026
  • Related party transactions conducted at arm's length
  • No change in shareholding pattern of the Company
  • ECPL remains 100% wholly owned subsidiary post-investment

Reference Regulation:

  • SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  • SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January, 2026
  • Regulation 30 read with Schedule III