Geojit allots shares to BNP Paribas

Geojit Financial Services Ltd has announced that, after receiving all necessary approvals, Board of Directors of the Company on March 13, 2007 has issued 5.68 crore shares and 2.28 crore warrants to BNB Paribas. With this final step, the French banking majors has become the largest share holder in the Company. The business will continue to be managed by the current team headed by Mr. C J George, Managing Director.

With the allotment of 5.68 crore shares, BNPP gets 27.18 percent 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 percent.

Commenting on current 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."

This additional capital will be utilized for expansion of business in the Middle East, branch expansion in India and strengthening the financial products distribution division. "Geojit BNP Paribas" will he able to combine the expanding branch network, technology and management capabilities with the brand image, international experience and product profile of BNP Paribas. According to Fortune magazine, BNP Paribas is the sixth most admired global banking brand. BNP Paribas operates in over 85 countries and has 140,000 employees. This oldest foreign bank in India is the 17th largest Company in the world with Euro 27.9 bn revenue for 2006.

Source : Equity Bulls

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