Nuvama Wealth Management Limited , a leading player in the Indian financial services sector, has reported a resilient performance for the second quarter, despite market volatility and the loss of a large client in its Asset Services business.

Key Financial Highlights

• Revenue: INR 772.00 crores (4% year-over-year growth)
• Profit After Tax (PAT): INR 254.00 crores
• Return on Equity (ROE): 28.00%

Business Segment Performance

Wealth and Private Business

The Wealth and Private businesses led the company's growth, expanding by 26% year-over-year. These segments now contribute 57% of total revenue, up from 47% in the same quarter last year.

Asset Services

Despite the loss of a large client, the Asset Services business has shown resilience:

• Recovered 50% of the revenue lost from the large client departure
• Management expects full recovery of lost revenue by January-February

Lending Business

The company's lending book grew by 40% during the quarter, reflecting a strategic focus on expanding this segment.

Asset Management

• Commercial Real Estate Fund: Reached INR 2,400.00 crores in fundraising towards a target of INR 4,000.00 crores
• Public Markets: Total gross sales were 2.5 times that of Q1

Corporate Actions

1. Interim Dividend: The Board has declared an interim dividend of INR 70.00 per share.
2. Stock Split: Approved a stock split from INR 10.00 to INR 2.00 face value to improve liquidity for retail investors.

Management Outlook

• Maintains guidance for net flows of INR 25,000.00-26,000.00 crores for the fiscal year
• Expects to fully recover the lost Asset Services revenue by early 2026

Market and Regulatory Environment

Management views the Indian economy as steady and resilient, supported by strong domestic demand. They also noted a pragmatic approach from regulators like SEBI and RBI, which is expected to have a positive long-term impact on the wealth management, asset management, and capital markets businesses.

Ashish Kehair, Managing Director and CEO, commented, "Our resilient Q2 performance reflects the strength of our diversified platform. We were able to capture flows across asset classes in our Wealth businesses and saw strong synergies between Wealth and Asset Management."

The company's focus on recurring revenue and managed products in its Wealth and Private segments appears to be yielding results, with these areas showing strong growth and contributing significantly to overall revenue and profitability.

As Nuvama Wealth Management continues to navigate market challenges and capitalize on growth opportunities, investors will be watching closely to see if the company can maintain its momentum and achieve its full-year targets.

Nuvama Wealth Management Limited has announced a significant corporate action that could potentially increase the accessibility of its shares to retail investors. The company is seeking shareholder approval for a 1:5 stock split through a postal ballot, aiming to enhance the liquidity of its equity shares in the stock market.

Key Details of the Proposed Stock Split

Voting Process and Timeline

• Voting Method: Remote e-voting
• Commencement of E-voting: November 8, 2025, 9:00 AM (IST)
• End of E-voting: December 7, 2025, 5:00 PM (IST)
• E-voting Platform: Provided by MUFG Intime India Private Limited

Rationale Behind the Stock Split

The Board of Directors believes that this stock split will:

1. Enhance the liquidity of the company's shares
2. Encourage greater participation from retail investors
3. Make the shares more affordable, potentially broadening the shareholder base

Impact on Shareholders

It's important to note that the stock split will not affect the rights and obligations of the existing shareholders. The total value of their shareholding will remain unchanged, although the number of shares they hold will increase proportionately.

Additional Corporate Actions

Along with the stock split, Nuvama Wealth Management is also proposing:

1. Consequential amendments to the Memorandum of Association to reflect the new capital structure
2. Adjustments to the company's employee stock option plans to ensure fair treatment of option holders

Next Steps

Shareholders are encouraged to participate in the e-voting process to cast their votes on this important corporate action. The results of the postal ballot will be announced after the voting period concludes.

While the stock split aims to improve market accessibility, investors should note that it does not inherently change the fundamental value of the company. As always, investment decisions should be based on thorough research and individual financial goals.