The Hindu Business Line : Geojit Securities is now Geojit BNP Paribas Financial services

NEW AVATAR: Mr Olivier Le Grand, Head of BNP Paribas Personal Investors, with Mr C. J. George, Managing Director, Geojit Financial Services Ltd, and Mr Fredric Amoudru, Chief Executive & Country Manager, BNP Paribas, at a press conference in Mumbai on Tuesday. - Paul Noronha

Mumbai March 13 BNP Paribas S.A. has become the single largest shareholder in Geojit Financial Services Ltd through a preferential allotment of 5.68 crore shares and 2.28 crore warrants. Geojit will now be rechristened `Geojit BNP Paribas Financial Services Ltd.'

The allotments follow shareholders' approval at the Extra Ordinary General Meeting held on November 22, 2006 and other statutory approvals, the company informed the BSE.

BNP Paribas will acquire 27.18 per cent stake in the company at Rs 26 per share and after the conversion of warrants into shares within 18 months at the same price, will increase its holding to 34.35 per cent. BNP Paribas will make an open offer for acquiring an additional 20 per cent stake in Geojit. The price for the open offer has not yet been decided, said Mr Olivier Le Grand, Head of BNP Paribas Personal Investors.

Shares of Geojit Financial Services rose 5.21 per cent to close at Rs 38.35 on the BSE.

However, even post-open offer there are no plans to delist Geojit from the stock exchanges, said Mr C.J. George, Managing Director, Geojit Financial Services Ltd.

The promoters' stake in Geojit will come down to around 30 per cent from around 45 per cent (going by BSE).

For BNP Paribas the deal will cost around Rs 207 crore and the fund infusion will be done in stages. It will fund expansion of business in the Middle East, branch expansion in India and strengthen the distribution of financial products.

The company will continue to be managed by the current team with Mr George as the Managing Director. Three members from BNP Paribas will be nominated on the board, namely Mr Olivier Le Grand, Mr Frederic Amoudru - Chief executive and Country Manager of BNP Paribas in India and Mr Rousseau - Head of BNP Paribas Securities, Asia.

"By joining the global network of BNP Paribas, Geojit will be in a position to serve the large Indian population living outside India, apart from gaining knowledge from BNP Paribas' position as the market leader in online brokerage in continental Europe," said Mr George.

Geojit wants to become a strong distribution platform for brokerage and savings products, increase margin lending in equities, develop institutional business and strengthen the business of Geojit Technologies Ltd.

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