(Bloomberg) -- Hong Kong-based private equity firm PAG will buy a 51% stake in the wealth management business of India’s Edelweiss Financial Services Ltd. for $300 million, the Mumbai-based company said in a statement to stock exchanges.

The deal is expected to close in the next 4-6 months and the wealth management business will be separated and listed in due course, according to the statement. Edelweiss’s board also approved a plan to explore fund raising opportunities for its general insurance and asset management businesses.

The Indian financial services company has been selling stakes in the business to bolster its capital ratios after a prolonged crisis in the country’s credit markets that started in 2018 made access to funding difficult. Kora Management committed to invest $75 million in Edelweiss’s advisory business last year, while Sanaka Capital also planned to invest as much as $75 million.

PAG plans to invest $1 billion in India in the next 2-3 years, according to a joint statement from the companies.

Separately, Edelweiss on Thursday posted a net loss of 2.45 billion rupees for the three months ended June 30, compared with a profit 1.32 billion rupees a year ago.

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