BNP emerges as the largest shareholders in Geojit

KOCHI: The Board of directors of the Kochi-based broking house, Geojit Financial Services on Tuesday issued 5.68 crore shares and 2.28 crore warrants to BNB Paribas thereby completing the formalities of one of the largest foreign investment in a retail broking firm in the country.

With this, the French banking group has become the largest share holder in Geojit Financial Services Limited. The name of the company will be changed to "Geojit BNP Paribas Financial Services Limited".

The business of the company will continue to be managed by the current team headed by Mr C.J.George, managing director. BNP Paribas had invested Rs 207 crore in Geojit in October last for acquiring nearly 34 % stake in the latter. With the allotment of 5.68 crore shares, BNPP gets 27.18 % stake in the company.

The Re 1 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 %.

Commenting on the developments, Mr.C.J.George said "By joining the global network of BNP Paribas, Geojit will be in a position to serve large number of Indians who live outside India in different parts of the world, apart from gaining knowledge from BNP Paribas's position as the market leader in on line brokerage in continental Europe".

The additional capital will be utilized for expansion of business in the Middle East, branch expansion in India and strengthening the financial products distribution division.