The 60-year-old Rashesh Shah is the chairman of the Edelweiss Group and a well-known figure in the financial sector, know his net worth and wife
He is being investigated along with four other individuals in connection with the suicide of art director Nitin Desai.
Who is Rashesh Shah chairman of Edelweiss Group, net worth, biography, age, wife, family, education, career
Edelweiss Group company is under probe for death of art director Nitin Desai
Rashesh Shah is an accomplished businessman with over three decades of experience. He built his abilities at the ICICI Group and has since created a profitable financial services company that offers loans, asset management, insurance, and asset reconstruction.
Rashesh Shah, along with wife Vidya Shah, and others hold 32.78 per cent stake in Edelweiss Financial Services Ltd.
Born: 30 September 1963 (age 59 years)
Education: Indian Institute of Management, Ahmedabad (1989), MORE
Organizations founded: Edelweiss Group, Edelweiss Capital
Children: 2
In 2022–2023, the Group’s parent business and flagship, Edelweiss Financial Services Ltd., generated earnings of Rs 8,764 crore. It has an estimated net worth of Rs 8,502 crore, a net debt of Rs 16,360 crore, and a profit of about Rs 610 crore, excluding insurance. The market capitalization of this listed company is Rs 4,369 crore. Let’s investigate the Group’s structure.
Rashesh Shah’s Family’s Equity Stake At Edelweiss Group
Promoter Rashesh Shah owns a 32.78% stake in Edelweiss Financial Services Ltd., along with his wife Vidya Shah and other investors. 2.57% of the stock is also owned by The Life Insurance Corporation.
Rekha Jhunjhunwala, the late Rakesh Jhunjhunwala’s wife, used to own 1.33% until March 2023, but her name is not shown in the most recent statement of shareholdings. She had the option of fully leaving the company or lowering her equity position below 1%.
Corporate Structure Of Edelweiss Group
The parent company for the Group, Edelweiss Financial Services Ltd., includes industries like credit, asset management, asset reconstruction, and insurance. The holding company has a 100% ownership position in ECL Finance and Nido Home Finance Ltd., two non-banking finance companies, under the credit category.
Nitin Desai’s firm, ND’s Art World, received loans from ECL Finance, which were ultimately repaid in full. With a 60% share in the Asset Reconstruction Corporation (ARC), the holding company. Additionally, CDPQ of North America owns an interest in the Group’s ARC division.
The holding company in the asset management industry holds 100% of both the AMC, or mutual fund business, and alternative assets. The holding firm holds a 100% stake in general insurance and a 75% stake in life insurance, with Japanese competitor Tokio Life as a partner.
The Main Segments Of Edelweiss Group
- Retail Credit: A NBFC in the consumer space with key products being home loans, SME and Business Loans
- Asset Management (Mutual Funds and Alternative Assets): Mutual fund play in the equities and debt markets
- Asset Reconstruction: buying bad loans from banks and institutions for resolution
- Insurance (Life, General); licence for life and non-life business
Update On Each Business Of The Group
Due to credit risk and asset-liability mismatches, the NBFC has been shrinking its wholesale book for the past four to five years. In reality, the company has made money off wholesale books in recent years. However, the pressure in other industries, including real estate, has hurt the bottom line.
The NBFC is expanding in the retail sector through partnerships and co-lending agreements, which is its current area of focus. With a debt of around Rs 8,000 crore, this company will have the largest profits in 2022–2023.
For the group, the asset management industry is expanding rapidly. AUM for the AMC, or mutual fund industry, is Rs 1.10 lakh crore. The alternate asset sector has an AUM of Rs. 50,000 crore. AMC will turn a profit in 2022–2023, earning Rs 177 crore. The mutual fund industry is a major player in the stock market.
With an AUM of Rs 37,000 crore, the Group operates the largest asset rehabilitation business in India. The company purchases defaulted loans, primarily from banks, and settles them by pursuing defaulted debtors through the SARFAESI, IBC, and other legal channels. This company, which has been in business for 15 years, has recovered Rs 45,000 crore from bad assets.
It has reimbursed banks and other financial institutions for almost Rs 43,000 crore. In 2022–2023, the ARC company generated net earnings of Rs 318 crore. In reality, the business, which previously concentrated primarily on corporate bad loans, is now increasingly interested in retail bad loans.
Both insurance firms are in the process of expanding their businesses.