French bank BNP Paribas has substantially increased its stake in broking firm Geojit Financial Services ( Part of Rakesh Jhunjhunwala Holdings) after conversion of 1.4 crore warrants issued to the former on preferential basis on March 13 '07.
The warrants have been converted at a price of Rs 26 per share against Thursday's closing price of Rs 23.2. Geojit shares were quoting flat at Rs 23 at 1 p.m. on Friday.
The company, however, did not disclose the shareholding of the promoter after conversion of the warrants. BNP Paribas held 27.1% stake in Geojit Financial Services, according to shareholding pattern as on December 31 '08 filed with the BSE.
Post conversion of the warrants, the French bank's stake is expected to have gone up to 32% of the equity capital. In July '07, Geojit Financial Services entered into 50:50 joint venture with BNP Paribas Securities Asia to offer services to foreign institutional clients in India. Subsequently, the foreign investor approached Sebi to seek regulatory approvals for an open offer. While the offer was originally slated to open in May '07, it, however, has been delayed because RBI did not approve the same on the ground that Geojit also was into commodities business.
The Indian broking firm has already exited commodities, subsequent to which BNP Paribas floated the open offer. According to the revised schedule, the offer opened on December 22 '08 and closed on January 10 '09. The post open offer shareholding of BNP Paribas could not be known.
As per Dec 08 shareholding pattern of Geojit financial, Rakesh Jhunjhunwala continues to hold 18,000,000 shares.