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BNP Raises Stake 
in Geojit to 34pc

Shaikh Sultan bin Saud AI Qassimi, chairman, Barjeel Geojit Securities, said the development would further strengthen Geojit’s presence in the Gulf through new strategic business associations.

“The acquisition of 34.33 per cent stake by the global banking major BNP Paribas in our partner Geojit will help us to strengthen our business processes, risk management tools and best practices,” he said.

K V Shamsudheen, Director, Barjeel Geojit Securities LLC, said Geojit had allotted 13.9 million shares to BNP Paribas S.A. consequent to the exercise of warrants issued to the bank in March 2007 when the bank initially took a 27.18 per cent stake in Geojit Financial Services Ltd. The share allotment was done at a meeting of the Committee of the Board of Directors of Geojit last week.

“The tender period of the mandatory open offer closed on January 10 pursuant to which BNP Paribas S.A. has conveyed its acceptance for 5.973 million shares. Consequent to the initial allotment of 56.8 million shares, acquisition of shares in the open offer and conversion of warrants, BNP Paribas’ stake in Geojit Financial Services Ltd. has gone up to 34.33 per cent.

Geojit, which has a network of over 500 branches and more than Rs5.4 billion in assets under management, first established its presence in the Gulf in the year 2001. This was the year when Geojit first entered the Gulf retail financial services market through Barjeel Geojit Securities, its joint venture with the Al Saud group in UAE with a license from Central Bank of UAE for international securities.

Currently, the company operates through its branches in Dubai, Abu Dhabi, Ras Al Khaimah, Sharjah and Muscat. New branches will shortly start in Fujairah and Al Ain.

Aloula Geojit Brokerage Company, Geojit’s other joint venture in the Gulf is with the Al Johar group in Saudi Arabia.

This joint venture in which Geojit is the single largest stakeholder recently started operations in the Saudi stock market after taking membership in Tadawul and getting approval from CMA. Geojit’s business association with the Bank of Bahrain and Kuwait provides the Bank’s NRI clients the opportunity to diversify their holdings through investments in the Indian stock market.

issacjohn@khaleejtimes.com