BNP Paribas sells its Indian retail broking division, Sharekhan, to Mirae Asset Financial

12 Dec 2023 , 12:10 PM

Reportedly, for a sum of Rs 3,000 crore, prominent European bank BNP Paribas sold its local retail broking division, Sharekhan, to South Korea’s Mirae Asset Financial Group.

The Economic Times reported on December 12 that the deal has been inked and that an official disclosure is anticipated at the Korean stock exchange shortly, citing two unidentified sources.

Among the first in India’s internet broking industry, Sharekhan is noteworthy for having established itself as one of the top 10 retail brokerage businesses in the nation. More importantly, strategic shifts within the financial industry and the changing retail broking landscape are reflected in BNP Paribas’ recent sale of Sharekhan to Mirae.

It is recognized that BNP Paribas’ decision to leave Sharekhan is a component of their plan to discontinue running retail businesses in India.

In January 2018, BNP Paribas successfully concluded the acquisition of Sharekhan, which it had previously announced in 2015. In order to establish a solid presence in the Indian brokerage and financial services industry, BNP Paribas acquired Sharekhan, which was a significant step in the financial sector. A little over Rs 2,000 crore in foreign investments were made as a result of the transaction, indicating its importance in terms of both market value and strategic location.

Prior to purchasing Sharekhan, BNP Paribas had invested 34% of the 2007 proceeds in Kochi-based Geojit Securities. In 2018, BNP Paribas then sold Sharekhan its thirty-three percent interest in Geojit Securities.

Over the years, Sharekhan’s ownership has changed. Since its founding in 2000 by Shripal Morakhia, the brokerage business has undergone a number of changes in leadership.

With 6.3 lakh active clients, Sharekhan reported a net profit of about Rs 170.9 crore for the fiscal year that ended in March 2023. When compared to the net profit of Rs 225.3 crore in the prior fiscal year, this represented a 25% decrease.

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