“… the company executed a Business Transfer Agreement with Geojit Investments Limited (“GIL”) on December 13, 2024, for transfer of the securities broking business (including clearing and settlement), margin financing business, depository participant services and business research analyst business,” Geojit Financial said in a regulatory filing.
The transfer will be executed on March 21, 2025, as per the Business Transfer Agreement signed on December 13, 2024. The securities business contributed ₹300.23 crore in revenue for FY23, representing 71.57% of Geojit’s standalone turnover, and had a net worth of ₹336.25 crore, accounting for 58% of the company’s standalone net worth.
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The transfer is structured as a slump sale, with the consideration determined based on the net asset value as of the closing date. Since Geojit Investments is a wholly owned subsidiary of Geojit Financial, the transaction qualifies as a related party transaction but is conducted at arm’s length.
“We inform you that we have received all required approvals from the Regulator, Exchanges, and Depositories for the Business Transfer and we plan to execute the transfer of the Securities Business from GFSL to GIL on March 21, 2025, according to the business Transfer Agreement,” Geojit Financial Services said.
Shares of Geojit Financial Services Ltd ended at ₹76.65, down by ₹0.90, or 1.16% on the BSE.
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