BNP Paribas acquires 34.35% stake in Geojit

Kochi, Mar 13 (UNI) French banking major BNP Paribas has acquired a 34.35 per cent stake in Indian financial services company Geojit, which will now be known as Geojit BNP Paribas Financial Services Limited, the company said today.

A release from Geojit said here after receiving all necessary approvals, the Board of Directors of Geojit today issued 5.68 crore shares and 2.28 crore warrants to BNP Paribas.

With this, the French banking major has become the largest share holder in Geojit Financial Services Limited, which will continue to be managed by the current team headed by Mr C J George, Managing Director.

BNP Paribas has got a 27.18 per cent stake in the company. The Re one face value share is now allotted at Rs 26. The board also issued 2.28 crore warrants which could be converted into equity shares at the same price. After conversion, the stake of BNP Paribas in the company will be 34.35 percent.

Mr C J George said ''by joining the global network of BNP Paribas, Geojit will be in a position to serve a large number of Indians who live outside India, apart from gaining knowledge from BNP Paribas's position as the market leader in on line brokerage in continental Europe.'' He said the company will utilize the additional capital for the expansion of business in the Middle-East, branch expansion in India and strengthening the financial products distribution division.

Commenting on the future of the company, Mr Olivier Le Grand, Head of BNP Paribas Personal Investors, said ''with this strategic cross-continent partnership, we will capitalise on Geojit BNP Paribas strong experience in brokerage and asset gathering to accelerate development and generate synergies in fast growing markets''.

For the nine months ended December 2006 Geojit recorded net profit of Rs 19.47 crore on an income of Rs 97.65 crore and declared an interim dividend of 40 per cent.

This joint venture company targets ten per cent market share in the Saudi domestic market with 15 branches in a medium term view, the release said.

UNI