Stock broking firm Geojit Financial Services on Friday said the company's board has approved the offer from French banking major BNP Paribas to acquire a 35 per cent stake in one of its subsidiaries.
BNP Paribas would acquire a 35 per cent stake in Geojit Technologies, which is into software development.
“The Board of Directors of Geojit Financial Services has in principle decided to surrender its membership in various commodity exchanges held by its wholly-owned subsidiary.
“This is to enable BNP Paribas to get approval from RBI for the open offer subsequent to their acquisition of 27.18 per cent stake in March 2007,” the firm said in a filing to the Bombay Stock Exchange.
Further, the board has accepted the offer of compensation of Rs 40 crore by BNP Paribas for surrendering memberships in various commodity exchanges.
During 2007-08, Geojit Technologies had started developing software for the French firm for some of its European operations.
The current investment is to scale up the software development and technology outsourcing business of the company, the filing said.
Geojit Financial Services' consolidated net profit more than doubled to Rs 11.82 crore for the fourth quarter of fiscal year 2007-08.
It had a consolidated net profit of Rs 5.74 crore in the year-ago period.
The company's consolidated revenues for the latest quarter stood at Rs 64.35 crore as against Rs 36.14 crore in the corresponding period a year ago.
Source: NDTV Profit