The EU banking major BNP Paribas will buy domestic online retail broking major Sharekhan for an undisclosed sum of money, but the market players estimated the the all-cash deal value to be at about Rs 2,200 crore.
Once the deal is completed, this will be the Paris-headquartered BNP Paribas’ second major investment in the Indian broking space. It also holds a 34% stake in Kochi-based Geojit BNP Paribas Financial Services. Sharekhan has about 12 lakh customers while the corresponding number for Geojit BNP Paribas is about 7.5 lakh.
This acquisition comes in a series of other partnerships declared in last two years of the Modi lead BJP government. In February 2015, through a PE-to-PE deal, Carlyle bought Destimoney Financial Services from New Silk Route for Rs 1,600 crore. And recently, Canada-based Fairfax made an open offer for a 26% stake in homegrown financial services firm IIFL (formerly India Infoline). The BNP Paribas deal comes within two weeks of the Fairfax announcement.
The rally in the Indian market, backed mainly by expectations of a strong economic revival under Modi’s stewardship, has been attracting foreign investors to one of the fastest growing emerging market economies in the world. – which a great news!
Source: Business Standard