Nuvama Wealth Shares Rise More Than 4% on SEBI Mutual Fund Approval, New Subsidiary and ESAR Awards

Mumbai, October 3, 2025: Nuvama Wealth Management Limited (NSE: NUVAMA, BSE: 543988) shares surged more than 4% in initial trade on Friday, following the company’s announcement of significant regulatory approvals and strategic corporate developments. The stock moved to an intraday peak of ₹6,799 from yesterday’s close of ₹6,489.

NSE and BSE-listed Nuvama Wealth Management Limited belongs to the NIFTY Smallcap 250 Index and has a presence in stockbroking, wealth management, financial advisory, and capital markets solutions. The company has widened its presence in advisory services, asset management, and ancillary financial services since being listed on September 26, 2023.

SEBI Approves Mutual Fund Sponsorship

Nuvama Wealth has confirmed that the Securities and Exchange Board of India (SEBI) has approved the company as the sponsor of its proposed Nuvama Mutual Fund. The approval is subject to compliance with SEBI’s conditions, marking a significant milestone in expanding the company’s financial services ecosystem. This development positions Nuvama to enter the growing mutual fund market, with potential revenue streams from asset management and trustee services.

Incorporation of Wholly Owned Subsidiary

The Board has approved the incorporation of a wholly-owned subsidiary, Nuvama Mutual Fund Trustee Services Limited, in India to provide mutual fund trustee services and related activities. The subsidiary will be established with an initial capital of ₹50 lakh, comprising 5,00,000 equity shares of ₹10 each.

The new entity will focus on trustee functions and ensure regulatory compliance for the company’s mutual fund operations, in line with SEBI guidelines.

Appointment of Senior Management

Dr. Dinesh Soni has been appointed as Group Head – Compliance, effective October 1, 2025. Dr. Soni brings nearly 30 years of governance and regulatory experience and previously served as MD & CEO of NSE Administration & Supervision Ltd., a regulatory subsidiary of NSE. His appointment reinforces Nuvama’s commitment to compliance and risk management ahead of its mutual fund launch.

Employee Stock Appreciation Rights (ESARs)

The Nomination and Remuneration Committee of the company approved the grant of 5,000 ESARs under the Nuvama Wealth ESAR Plan 2024. The rights will vest as per the scheme conditions and can be exercised during two years from the date of vesting, providing employees with a chance to share in the growth of the company.

Stock Performance Snapshot

As of 2:02 pm IST on October 3, 2025, Nuvama Wealth shares were trading at ₹6,719.50, up ₹230.50 or 3.55%. The stock’s 52-week trading range is ₹4,735.45 to ₹8,508.50, with a market capitalization of approximately ₹24,431.73 crore.

The SEBI clearance, setting up of a separate mutual fund subsidiary, and ESAR awards have been viewed as major growth drivers for the firm, with a platform to ramp up mutual fund business while holding on to and motivating top talent.

REF:https://nsearchives.nseindia.com/corporate/NWML_01102025194805_SE_Mutual_Fund.pdf

https://nsearchives.nseindia.com/corporate/NWML_01102025200742_SE_BMOutcome_Oct011025_Final.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations