Mumbai: French lender BNP Paribas (BNPP.PA) will pay Rs 405 million to buy out its Indian institutional broking business from local partner Geojit Financial Management Services, the Indian company said on Thursday.
The joint venture, catering to domestic and foreign institutional clients, was set up after the French lender bought a strategic stake in the retail broking business of Geojit Financial Services, which is now Geojit BNP Financial Services (GEOJ.NS).
The transaction however does not change BNP's 33.5 per cent holding in Geojit BNP Paribas Financial Services, it said.
BNP Paribas and Geojit Financial Management have a joint venture, BNP Paribas Securities India Private Ltd, in which the French firm had invested 275 million rupees, Geojit BNP Paribas Financial Services, said in a statement on Thursday.
Sources had told Reuters last month that BNP Paribas was in advanced talks to buy out its Indian partner Geojit Financial Services in an institutional broking joint venture.
Shares in Geojit BNP Paribas Financial Services fell 1.52 per cent on Thursday to Rs 16.25 in a weak Mumbai market .BSESN.
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