PAG suffers major impact from Sebi's Jane Street restrictions
India's market regulator SEBI has banned US investment firm Jane Street for alleged market manipulation, making it harder for PAG to sell its majority stake (54.78%) in Nuvama Wealth Management.
The move has put the deal under a regulatory spotlight and made buyers more cautious.
Only a few PE firms are left in the race
Nuvama's sale is a big deal—worth about $1.6 billion—and now only a few private equity firms like CVC, Permira, and EQT are still interested after HSBC withdrew from the bidding process.
Even though Nuvama wasn't named in SEBI's order, its partnership with Jane Street has investors worried about possible ripple effects.
Nuvama remains listed on major indices
Jane Street accounts for 15-20% of some of Nuvama's revenues, so analysts expect earnings could dip 7-8%.
The good news? Clearing corporations back trades, so the risk is limited.
Despite an initial 11% stock drop after the ban, Nuvama remains listed on major indices and has started to bounce back.