Mirae acquires Indian brokerage from BNP Paribas for $370 million

[Mirae Asset Global Investments]

Mirae Asset Securities is acquiring the 10th largest brokerage firm in India for $370 million, Mirae said on Tuesday.

Mirae signed a stock purchase agreement with BNP Paribas SA to acquire a 100 percent stake in Sharekhan, a retail brokerage firm, said Mirae.

BNP Paribas in 2015 agreed to buy Sharekhan, headquartered in Mumbai, from private equity firms for an undisclosed sum.

Established in 2000, Sharekhan operates some three million accounts and has 130 branches nationwide. Its net profit last year was $21 million, according to Mirae.

Mirae said the latest deal will help the company “occupy the brokerage sector” which is seeing very high retail participation, with equities trading at an all-time high, amid increased liquidity.

The acquisition deal came amid the rapid growth of India’s stock market, which overtook Hong Kong to become the world’s seventh-largest stock market as of Tuesday.

India’s Nifty 50 index jumped around 16 percent this year.

Mirae Asset Investment Managers India operates 37 funds worth a total of 41 trillion won ($31.1 billion) as of this year. It is the ninth-largest asset management operator in India.

BY JIN MIN-JI [jin.minji@joongang.co.kr]