Geojit BNP Paribas Financial Services has rallied 10% to Rs 17.80 after the board of directors of the company approved the sale of its entire stake in a joint venture company to BNP Paribas SA for Rs 40.50 crore.
“The board has decided accept the offer of Rs 40.5 crore from BNP Paribas SA for divesting the entire stake held by Geojit Financial Management Services (P) Ltd, wholly owned subsidiary, in BNP Paribas Securities India Pvt Ltd, the joint venture company doing institutional broking. This is against an investment of Rs 27.5 crore,” the company said in a filing to the stock exchanges.
BNP Paribas Group will acquire the stake and subsequently own 100% of BNP Paribas Securities India, ensuring business continuity. This transaction has no impact on the shareholding of BNP Paribas in Geojit BNP Paribas Financial Services, which remains at 33.5%, it added.
A combined 170,730 shares have changed hands on the counter so far on the NSE and BSE.
