French financial services major BNP Paribas has sold its local retail broking unit Sharekhan to South Korea’s Mirae Asset Financial Group for ₹3,000 crore, said two people close to the development.
“The deal has been signed and the disclosure will made at the Korean stock exchange soon,” said one of the persons quoted above.
Mails sent to BNP Paribas and Mirae Asset didn’t elicit any response.
In 2016, BNP Paribas had acquired Sharekhan from a clutch of private equity firms, including Citi Venture Capital International (CVCi), Baring Asia Private Equity and Samara Capital, for ₹2,100 crore.
“BNP Paribas wants to focus mainly on the banking business. They had earlier exited the mutual fund and wealth management businesses also,” said the second person quoted above.
Before acquiring Sharekhan, BNP Paribas, in 2007, had picked up 34% stake in Kochi-based Geojit Securities. Later, in 2018, BNP Paribas sold its 33% stake to Sharekhan.
Sharekhan, founded by Shripal Morakhia in 2000, has changed hands several times in the past.
As of November, Sharekhan, with 6.3 lakh active clients, held the 11th position among Indian broking firms. For the fiscal year ending in March 2023, Sharekhan disclosed a net profit of ₹170.9 crore, marking a 25% decrease compared to the net profit of ₹225.3 crore in FY22. The company’s total income slightly decreased in FY2023 to ₹1,154 crore, as opposed to the total income of ₹1,161.1 crore in the preceding fiscal year. Sharekhan was one of the first brokerage houses to introduce online trading in India. It claims to have a client base of over 29 lakh, 130 branches, and 4,000 business partners.
“Mirae Asset wants to beef up its stock broking business in India,” said the person quoted above.
Founded in 1970, Seoul-based Mirae Assets Financial Group provides comprehensive asset management and brokerage services across the globe. Globally, it has AUM of $565 billion, and in India, it has 22 branches and has ₹1.5 lakh crore of assets under management. In India, it has 59 lakh folios and monthly SIP book amount of ₹858 crore.
Mirae Asset Global Investments Co had set up a local unit in Mumbai in 2006.
Source: Economic Times