Wealth First Portfolio Managers Limited

Execution of Memorandum of Understanding for Acquisition of Wealth First Advisors Private Limited

Wealth First Portfolio Managers Limited ('WFPML' or 'the Company') has entered into a Memorandum of Understanding (MOU) with Wealth First Advisors Private Limited ('the Target Entity') and its existing shareholders on 30th June 2026.

Main Terms of the MOU:

  • Purpose: 100% acquisition of Wealth First Advisors Private Limited in two phases to expand the Company's assets, distribution footprint, scale, operations, and market position by acquiring a controlling stake in a target entity engaged in similar business activities (Wealth Management/Mutual Fund and financial product distribution) in Mumbai, India's largest Wealth Management Market.
  • Acquisition Structure: The acquisition will be completed in two phases:
  • Phase I: Acquisition of 51% of the Equity Share Capital of the Target Entity
  • Phase II: Acquisition of the remaining 49% of the Equity Share Capital of the Target Entity
  • Financial Details:
  • Phase I Consideration: ₹52.10 Crore based on an independent valuation report
  • Payment Mode: ₹40 Crore cash consideration + ₹12.10 Crore through issuance of new equity shares under share swap
  • Phase II Consideration: To be determined at a future date based on valuation metrics and norms specified in the MOU
  • Payment Mode: Entirely through issuance of new equity shares under share swap
  • Date of Execution: 30th June 2026
  • Parties Involved:
  • First Party: Wealth First Advisors Private Limited (Target Entity)
  • Second Party: Wealth First Portfolio Managers Limited (WFPML)
  • Third Party: Existing Shareholders of Wealth First Advisors Private Limited
  • Approvals: The transaction received approval from the Board of Directors at their meeting held on 30th June 2026.
  • Significant Terms: The MOU contains customary transfer restrictions including lock-in arrangements, right of first refusal, tag-along rights, drag-along rights, escrow arrangements for balance shareholding, non-compete and non-solicitation obligations. The agreement also requires customary representations, warranties, and covenants from the parties.

Related Party Transaction Disclosure:

  • The Target Entity is an entity belonging to the Promoter Group of WFPML
  • The proposed acquisition constitutes a related party transaction
  • Mr. Ashish Shah, Promoter and Managing Director of the Company, has 10.62% shareholding/beneficial interest in the target entity
  • The transaction is being undertaken on an arm's length basis, with consideration determined based on an independent valuer's report