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Paris-based BNP Paribas, a French bank and financial services company, will buy Sharekhan, online retail brokerage major, for an undisclosed amount. However, market players reveal that the deal is valued at about Rs 2,200 crore. Representing 70% market, Sharekhan has 1.2 million clients.

The deal will be the French bank’s second major investment in the Indian brokerage area, upon completion. BNP Paribas holds 34% stake in Geojit BNP Paribas Financial Services, based in Kochi. Geojit BNP Paribas Financial Services has about 7.5 lakh customers.

BNP enlarging footprint in India

Head of BNP Paribas India, Joris Dierckx, said the purchase would help enlarge the group’s footprint in India.

“Sharekhan will serve as a platform for the group’s strategy in India to offer a comprehensive range of products, from pure brokerage to asset-based investment services, including mutual funds and savings products. The purchase of Sharekhan is a unique opportunity for us to build on our achievements in the Indian market and further expand our business in India,” Dierckx said.

At present, the private equity arm of Rohatyn Group, CVCI, holds 60% in the unlisted Sharekhan. The 14% is owned by Baring Asia Private Equity, 10% by IDFC and 5% by Samara Capital. Employees of the brkinf firm hold remaing 11%.

-Sumana