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BNP Paribas to acquire broking firm Sharekhan

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Global financial services group BANQUE NATIONALE DE PARIS (BNP) Paribas to acquire retail brokerage SHAREKHAN, one of the first movers in the country’s online broking segment at a value between Rs 2,000 crore and Rs 2,200 crore.

  • BNP Paribas after nearly six months of negotiations between existing investors and bidders, including bulge bracket private equity (PE) firms Warburg Pincus Llc. and General Atlantic Llc., which bid together.
  • Sharekhan will be part of BNP Paribas Personal Investors division, which is a key player in retail brokerage and digital banking services with 1.7 million clients in Europe.
  • BNP Geojit Paribas currently has around 7,50,000 retail clients.
  • JORIS DIERCKX, head of BNP Paribas India, said that the acquisition would help expand the group’s footprint in the country.

About SHAREKHAN:

  • Sharekhan, formerly SSKI Investor Services, was incorporated in 1995.
  • The firm was originally promoted by Shripal S Morakhia and Shreyas S Morakhia.
  • Sharekhan is ranked 2nd largest stock broker portal and has its branches in 575 cities in India.
  • Data from the registrar of companies show that Sharekhan earned Rs.355.5 crore in revenue from operations in fiscal 2014 and a net profit of Rs.83.8 crore.
  • With a 7% market share in terms of the number of accounts, Sharekhan is the first independent and third retail brokerage firm in India.

About BNP PARIBAS:

  • BNP and Paribas initially were two separate French banks which were incorporated in 1848 and 1872 respectively, and came together in 2000 forming as a world’s third largest bank.
  • BNP Paribas, which is present in the country since 1860, has branches in eight major cities.
  • In 2007, BNP Paribas had acquired a 34.5 per cent stake in another brokerage house, Kochi-based Geojit Financial Services Ltd, now known as Geojit BNP Paribas Financial Services Ltd.
  • BNP Paribas has a presence in 75 countries with more than 185,000 employees, including 145,000 in Europe.
  • Geojit BNP Paribas share price shot up over 13 per cent after BNP Paribas announced the acquisition of Sharekhan.