Geojit Securities renamed Geojit BNP Paribas Financial services; not to be delisted
By Our Corporate Bureau | 14 Mar 2007
Mumbai: BNP Paribas S.A. has become the single largest shareholder in Geojit Financial Services through a preferential allotment of 5.68 crore shares and 2.28 crore warrants.
With this, Geojit Securities is set to be renamed 'Geojit BNP Paribas Financial Services'.
The allotments follow shareholders' approval at the Extraordinary General Meeting held on 22 November 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, after the open offer, there are no plans to delist Geojit from the stock exchanges, said CJ George, managing director, Geojit Financial Services.