Business Overview
Choice International Ltd was incorporated in 1993. It is an integrated and diversified financial services group. It provides a wide range of financial services that includes Broking & Distribution, Investment Banking, Financial Services to Business Advisory, Regulatory Compliances to Government authorities & other corporate entities, Retail loan distribution, Mutual Fund distribution, technical services, and other ancillary services. The registered office of the Company is in Mumbai.
KEY POINTS
Business Segments
1. Broking and Distribution Business:
Co. offers stock broking services, insurance broking and wealth services. The stock broking business is channelized through their subsidiary M/s. Choice Equity Broking Private Limited.
The Insurance Distribution Services are provided through its subsidiary M/s. Choice Insurance Broking India Private Limited.
Wealth Services are channelized through its subsidiary M/s. Choice Wealth Private Limited.
As of Q1FY24, company has 7,21,000+ Demat Accounts out of which 207,000+ are active accounts. The company has Rs. 322 Bn Stock Broking AUM and Rs. 4,054 Mn Mutual Fund AUM and 8000+ insurance policies sold.
68% of revenues from this segment comes from Tier 3 and below cities.
2. NBFC Services: Key services under this segment include MSME Flexi Credit for Micro Enterprises, Loan against Securities, MSME Supply Chain Finance, etc. The NBFC services are routed through its wholly-owned subsidiary, Choice Finserve Private Limited, which is an RBI registered Non-deposit-taking NBFC.
As of Q1Fy24, company has Rs. 4.15 Bn
Total Loan Book out of which Rs.1484 Mn is the Retail Loan Book.
3. Advisory Services: Key services under this segment include management consulting, investment banking, infrastructure consulting and government advisory. Their Investment Banking & Merchant Banking services are catered through wholly owned subsidiary Choice Capital Advisors. Infrastructure consultancy business is offered through its wholly owned subsidiary Choice Consultancy Services Private Limited.
As of Q1FY24, company is present in 10+ states with an order book of Rs. 5.27Bn. The company serves max advisory projects in Maharashtra with 63% revenue share.
Revenue Mix - Q1FY24
Broking Services - 59%
Advisory Services - 28%
NBFC Services - 13%
Geographical Footprint
Co. has 104 offices, 150+ Inhouse Tech xperts, 32K+ Choice Business Associates, 850K+ Clientele, 3.4K+ Team Strength across India.
Choice Equity Broking Private limited (CEBPL)
In February 2022, the entire control of “M/s. Escorts Securities Limited (ESL)” was taken over by CEBPL. CEBPL contributes to 58% of the Co.’s total revenue.
Choice Consultancy Services Private limited
The subsidiary offers consultancy in sectors such as Road, Highways and Bridges Development, Water Management, Affordable Housing, etc.
Retail and Institutional Services
The Co. offers B2C services which include Stock Broking, Wealth Services and NBFC Services. The B2B services comprise of Management consulting, Investment Banking and government services like Infrastructure Consulting and Government Advisory.
Acquisition of Insurance Broking Business
In October 2021, the Co. acquired a 50% stake in M/s. Choice Insurance Broking India Private Limited, a Registered Insurance Broker with IRDAI, by acquiring 6.6 lakh shares for a consideration of ~Rs. 59 lakhs.
Acquisition of Mutual Fund Distribution Business
During FY22, the Co.’s step down subsidiary ‘M/s. Choice Wealth Private Limited’ acquired mutual fund distribution business of Centcart Money Services Private Limited.
In October 2020, the company acquired the mutual fund distribution business of “Bank Bazaar”.
Conversion of Preferential Warrants into Equity Shares
In January 2020, the Co. had allotted ~1.9 Cr Equity Warrants at a price of Rs. 51 per warrant. During FY22, ~1 Cr Warrants were converted into equivalent number of equity shares in trenches. As on the year end there are no outstanding warrants to be converted into equity.
Rights Issue
During FY22, the Co. raised ~Rs. 51 Cr through allotment of 99.5 lakh Equity Shares at a price of Rs. 51 per share on Rights Issue basis.
Bonus Issue
Co. issued a bonus issue in the ratio of 1:1 in FY23 increasing their authorised equity share capital to Rs. 108,00,00,000/- with FV of Rs. 10 /- share.
Decline in Promoters Shareholding
The promoters shareholding have decreased from ~64% in December 2021 to ~51% in September 2022.
Subsidiaries
The company has 11 subsidiaries under its portfolio as of Q1Fy24.
Disc: Invested
