French global banking major, BNP Paribas, has picked up a 27.1% stake in Geojit Financial Services. Post this stake buy the company will be called Geojit BNP Paribas Financial Services. Geojit Financial has issued 5.68 crore shares and 2.28 crore warrants to BNP Paribas. These warrants will be converted into equity shares at Rs 26 per share. C.J. George, MD, Geogit Financial said that BNP would have to give an open offer in about 4 days and if it succeeds then there is a possibility that they could increase their stake in the company.
"There is no intention of delisting the company. The Kerala State Industries Corp will now hold 9% stake, while about 21% will be held by me," said C.J. George. Post this conversion, BNP's stake will go upto 34.3%. The face value at which the shares were alloted was Rs 26. Olivier Le Grand, Head of BNP Paribas Personal Investors said, "The Indian market fits with our services, we see strong development in Indian equity markets. Compared with other emerging markets we see strong GDP ratio in the Indian market. Our strategy is to go organic in the retail space which include asset and finnacial services."
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