HSBC joins PEs in race for Nuvama Wealth

Mumbai: Europe's largest lender HSBC is competing with global private equity firms to acquire Nuvama Wealth and Investment Ltd, according to sources in the know. Asia-Pacific-focused private equity firm PAG, the current owners of the listed financial services company, has revived attempts to sell the business after a year-long gap. HSBC is battling at least six other private equity contenders, including Brookfield, Warburg Pincus, EQT, CVC Capital, Permira, Chrys Capital, and General Atlantic, for the asset.

Investors are flocking to tap into India's growing appetite for investment and spending, adding to the already intense competition. This race mirrors events from 2025, with at least two more strategic players expected to join the fray this week. The Securities & Exchange Board of India (SEBI) issue last August impacted Nuvama's stock price, causing volatility that tripped up the sale process.

PAG, which holds a 53.98% stake in Nuvama, reappointed advisors Morgan Stanley and JP Morgan to facilitate the divestment. The company's 53.12% stake through Pagac Ecstasy Pte Ltd and Asia Pragati Strategic Investment Fund is valued at Rs 17,336 crore ($1.8 billion). An open offer for an additional 26% of the company is also triggered by this transaction.

Nuvama's shares have been volatile over the past year, with a 50% gain on a split-adjusted basis from late August 2025 to August 28, 2025. The company announced a 1:5 stock split in November 2025, revising the face value from Rs 10 to Rs 2 while keeping the authorized share capital unchanged at Rs 799.54 crore.