Shah believes that establishing these partnerships will create win-win opportunities and unlock value in about a year. He also notes that while the upper-end housing market is expanding rapidly, the prospects for affordable housing finance over the next four to five years are particularly promising.

SBI Securities reports that the Indian Housing Finance Market was valued at ₹33.1 trillion in FY24, experiencing a CAGR of 13.3% from FY19 to FY24. This growth is attributed to increasing disposable incomes, strong demand, and the entry of more players into the sector.

Also Read | Rashesh Shah confirms selling stake in Nuvama Wealth, explains the rationale

In recent years, the housing finance segment has benefited from stable property prices and higher annual incomes for borrowers. In FY24, the overall housing market expanded by 15.2%, fueled by the aspirations of a young, growing population moving to metropolitan areas and heightened demand in Tier 2 and 3 cities.

Looking ahead, the Indian housing finance market is projected to grow at a CAGR of 13% to 15% between FY24 and FY27.

Nuvama Wealth Management was earlier known as Edelweiss Wealth Management.

“We spun off the business, got it listed but we kept about 14% of the company with Edelweiss for our own needs, we had some borrowings. So whatever was held, slightly under half of that is what we have sold today morning,” he said.

Also Read | Edelweiss promoters divest some holdings in Nuvama Wealth to comply with shareholding norms

He is bullish on the wealth management space and Nuvama in particular.

“We have enough liquidity for our investment needs, so a large part of what we have liquidated would go towards repayment of debt. We want to be asset-light, low debt,” Shah said.

So over the last four to five years, Edelweiss has been reducing its debt – from ₹50,000 crore to ₹13,000-14,000 crore – that is 75% of the group debt in the last four years, he mentioned.

As many as 22.1 lakh shares or 6.2% equity of Nuvama Wealth Management changed hands in block deals on Friday.

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