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 India's Edelweiss Financial Services on Monday said it has started the process of selling equity in its alternative asset management unit and plans to raise about 15 billion to 20 billion rupees ($180.69 million-$240.93 million) by a divesting 10%-20% stake.

The company is receiving significant interest for the stake sale in Edelweiss Alternative Asset Management (EAAM), and the process is likely to be concluded in four to five months, Edelweiss said in a statement.

The move to sell the stake will reduce the company's debt and improve its market value, it said.

Edelweiss Financial Services' net debt amounted to 152.20 billion rupees as of September-end, the company said in an investor filing in November.

EAAM's current assets under management stood at 500 billion rupees as of September-end and have grown at a compound annual growth rate of 31% since fiscal year 2017, Edelweiss said.

Separately, Edelweiss said the Indian securities appeal court last week dismissed an appeal filed by its former unit, Nuvama Clearing Services, in relation to a case on the handling of client securities as a clearing agent.

Nuvama Clearing has already earmarked 2.36 billion rupees with the clearing corporation of the stock exchange in relation to the case and will also explore legal options, Edelweiss said.

Edelweiss Financial Services shares, which are up 121% so far this year, fell as much as 8.8% in early trade before trimming some losses. They last traded 1.8% lower at 74.90 rupees.