BNP Paribas to pick 33.35% stake in Geojit Financial, stock up 9.82% at Rs.27.4

Geojit Financial Services Ltd has announced that the Board of Directors of the Company at its meeting held on October 22, 2006, has approved the proposal of the Company to issue and allot to BNP Paribas S.A. (the "Investor"), on a preferential allotment basis, equity shares, warrants convertible into equity shares or any combination thereof, such that the total number of equity shares issued (whether as equity shares or upon the conversion of the warrants) shall not exceed 7,96,31,170 equity shares of Re 1, at price of Rs 26 per equity share, which has been determined in accordance with the applicable laws and guidelines. The said 7,96,31,170 equity shares or warrants convertible into equity shares of the Company shall represent up to 33.35% of the total post issue paid up equity share capital of the Company on a fully diluted basis (upon conversion of existing stock options into equity shares).

The above proposal is subject to the satisfaction of various conditions, including the execution of agreements and documents to give effect to the transaction, obtaining necessary approvals from the shareholders and appropriate regulatory authorities.

Source : Equity Bulls

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