According to media reports, HSBC Holdings PLC has entered the contest for a 54% stake in Nuvama Wealth and Investment (NUVA), joining a field of at least six private equity firms in what is valued at approximately $1.8 billion. The sale process, which had been shelved for about a year, was revived by existing shareholder PAG, which has now restarted the divestment procedure.

Sources familiar with the matter indicate that HSBC is now competing against a roster of institutional investors including Brookfield, Warburg Pincus, EQT, CVC Capital, Permira, ChrysCapital, and General Atlantic. Non-binding bids were submitted by all interested parties last week, with expectations that at least two strategic investors will join the competitive process this week.

PAG resumed the asset sale initiative last month and has reappointed Morgan Stanley and JPMorgan as financial advisors for the transaction. Through its entities Pagac Ecstasy and Asia Pragati Strategic Investment Fund, PAG holds approximately 53.98% of Nuvama's equity, which at the current market capitalization translates to a value of roughly 173.36 billion Indian rupees. The proposed deal would also trigger a mandatory open offer for an additional 26% of Nuvama's shares.

Based in Mumbai, Nuvama Wealth is a comprehensive Indian wealth management firm that was formerly known as Edelweiss Securities before being acquired and rebranded by private equity firm PAG in 2021. The company currently oversees assets under management exceeding 4.4 trillion Indian rupees, catering to high-net-worth and ultra-high-net-worth individuals as well as corporate clients, positioning itself as one of the larger integrated wealth management platforms in the Indian market.