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French financial services major BNP Paribas is acquiring the Indian institutional broking business from local partner Geojit Financial Management Services for Rs 40.5 crore ($7.8 million), the company said on Thursday.

Ace market investor Rakesh Jhunjhunwala-backed Geojit BNP Paribas Financial Services said the company’s board has accepted the offer for divesting the entire stake held by its wholly owned subsidiary Geojit Financial Management Services (P) Ltd, in BNP Paribas Securities India Private Ltd, the joint venture company involved in institutional broking.

The firm said its investment in the JV amounted to Rs 27.5 crore.

This transaction, however, has no impact on the shareholding of BNP Paribas in Geojit BNP Paribas Financial Services Ltd, the company disclosed. BNP Paribas holds 33.5 per cent in the public listed firm. Rakesh Jhunjhunwala owns 7.88 per cent in the firm as of September 30, 2011.

This transaction is subject to regulatory approval and the signing of the necessary agreements between the two parties.

Geojit BNP Paribas Financial Services scrip was down 0.6 per cent to close at Rs 16.35 a share on Thursday at BSE in a weak Mumbai market.

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