Nuvama Wealth Management Ltd

- The company plans to think about raising a new fund in the next two quarters, focusing on private markets (Page 5). - They are evaluating credit opportunities, including real estate and performing corporate credit, to add to their offerings (Page 5). - There is no explicit mention of any immediate or specific new equity fundraising. - The retained earnings after dividends are expected to be sufficient to support business growth, indicating no immediate equity raise necessity (Page 13). - No explicit reference is made to raising capital through debt instruments in the provided pages.

- The company is investing in expanding its Wealth Management capacity, targeting the addition of 175 to 200 Relationship Managers (RMs) net per year over the next couple of years to drive growth and productivity. - Capital investments include setting up operations in new geographies such as Dubai, with licenses secured and initial clients onboarded, though meaningful revenue contribution from Dubai will take time. - Expansion in Asset Management is ongoing, including launching new products like a FlexiCap fund and possibly a credit fund within two quarters. - Investing in technology to support business growth and improve employee productivity. - Capacity additions continue in both Wealth and Private markets, with associated investments in hiring costs, technology, and office infrastructure. - Asset Management is moving towards breakeven, expecting profitability improvement by next year as assets under management increase beyond INR 13,000 crores.

- Nuvama expects continued strong growth in revenue, with capital markets showing around 100% Y-o-Y growth and operating PBT growing even faster. - Wealth management revenue grew ~24% with plans to add 175-200 RMs annually, indicating sustained growth in assets and income. - Asset management is forecasted to grow significantly, targeting breakeven as AUM crosses ~INR 15,000 crores, with new product launches like FlexiCap and credit funds in pipeline. - Cost-to-income ratios in wealth management are expected to improve from 65% to ~60% over the next 2-3 years, driven by productivity gains. - The company anticipates that net new money inflows will be around 30%-35% of opening ARR assets annually. - New markets like Dubai are being developed but will take time to contribute meaningfully. - Overall cost-to-income ratio across businesses is targeted to stay between 55%-60% in the next three years.

- Capital markets segment expects disproportionate profit growth vs. revenue; with revenue up 100% Y-o-Y, PBT grew 150%-155%. - Asset Management aims to break even by mid-next year (Sep-Oct 2025) at around INR 13,000 crores AUM and INR 80 crores fee income. - Wealth Management's cost-to-income expected to decrease from 65% to 60% over next 3 years due to increased RM productivity. - Overall company's cost-to-income ratio targeted between 55%-60% in next 3 years due to Wealth Management, Asset Management improvements. - Nuvama Wealth and Nuvama Private anticipate steady RM additions (~175-200 per year) fueling business growth. - Interim dividend maintained at ~47% of profits with retained earnings sufficient for growth. - Operating Profit Before Tax (PBT) of Wealth and Private businesses growing 20%-25% range. - Over the next 2-3 years, aim for cost-to-income in key segments to improve significantly, driving earnings growth.

- The Investment Banking (IB) deal pipeline remains strong with an increased number of filings compared to previous quarters. - Assuming market conditions sustain, there is no expected dip in deal closures; deal activity in Q2 was double that of the previous year. - Around 80-90% of the existing deal pipeline is expected to fructify within the year. - Half of the IB revenues come from fixed income transactions, which are stable and unaffected by market volatility. - There is positive visibility and momentum in the IB pipeline with continued activity in ECM deals and fixed income. - Overall, the outlook on deal flow is optimistic with consistent deal pipeline and revenue expectations barring adverse market conditions.