Shares of Edelweiss Financial Services surged nearly 9% on Tuesday following a sharp rise in quarterly profit and a major investment by global private equity firm The Carlyle Group.
Edelweiss reported a consolidated net profit of ₹264 crore for the December quarter, more than double the ₹125 crore earned in the same period last year. While interest income saw a slight decline, overall performance exceeded market expectations, boosting investor confidence.
The standout development was Carlyle’s agreement to invest ₹2,100 crore in Nido Home Finance, Edelweiss’s housing finance subsidiary. Under the deal, Carlyle funds will acquire a 45% stake in Nido, including ₹1,500 crore in primary equity and the rest through secondary share purchase. On a fully diluted basis, Carlyle and co-investors are expected to hold around 73% of Nido, making them the strategic majority backers.
Founded in 2010, Nido focuses on home loans for the affordable and mass-market segments, with an asset base of ₹4,804 crore and presence in over 800 talukas across India. The partnership with Carlyle is expected to strengthen Nido’s growth and expand its reach to underserved semi-urban and rural customers.
Edelweiss said the deal is part of its broader strategy to unlock value from subsidiaries and bring strong partners on board to scale key businesses. Carlyle’s involvement reflects continuing interest from global investors in India’s housing finance sector, driven by rising affordability and policy support.
Veteran banker Aditya Puri, senior advisor to Carlyle in Asia and former CEO of HDFC Bank, will also participate as a co-investor in Nido. The investment is subject to approvals from the Reserve Bank of India, National Housing Bank, and the Competition Commission of India.
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