Edelweiss Financial Services (NSE:EDELWEISS, BOM:532922) has completed the sale of a 4.4% stake in its subsidiary EAAA Alternatives India through common equity for 3.75 billion Indian rupees, according to a Monday filing to the Indian stock exchanges.

The allocation has been made to key limited partners and select individual investors, as part of EAAA's initial public offering (IPO) plan. The company said it had initially intended to put around 4% stake for placement, but with the strong demand, it chose to restrict the placement to 4.4%.

EAAA filed a draft red herring prospectus on Jan. 19, and awaits approval from markets regulator, Securities and Exchange Board of India, for its IPO.

The company has 681.8 billion rupees in assets under management with diversified portfolios in private credit and real assets.

Edelweiss shares were down nearly 4% in recent trade.