Choice International surges as its arm all set to acquire NBFC, Loan Distribution Portfolios
Choice International is currently trading at Rs. 484.65, up by 11.35 points or 2.40% from its previous closing of Rs. 473.30 on the BSE.
The scrip opened at Rs. 484.60 and has touched a high and low of Rs. 487.40 and Rs. 481.00 respectively. So far 4999 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 498.35 on 21-Oct-2024 and a 52 week low of Rs. 193.23 on 26-Oct-2023.
Last one week high and low of the scrip stood at Rs. 498.35 and Rs. 468.00 respectively. The current market cap of the company is Rs. 9436.61 crore.
The promoters holding in the company stood at 58.21%, while Institutions and Non-Institutions held 12.81% and 28.98% respectively.
Choice International’s NBFC arm -- Choice Finserv is all set to acquire retail lending business of Paisabuddy Finance and Sureworth Financial Services. This strategic move significantly expands Choice Finserv's presence in the retail loan segments as well its assets under management (AUM). These acquisitions will be done under a slump sale transaction which will be subject to requisite approvals.
The acquisition encompasses the retail loan portfolios, team size, operations, and infrastructure of both the Jaipur-headquartered companies. Paisabuddy Finance, an established MSME lender across Rajasthan, Gujarat and Madhya Pradesh (MP), will bring in a portfolio of Rs 278.54 crore AUM, while Sureworth Financial Services, which specializes in MSME loans and Affordable Housing Loans, adds Rs 65.38 crore AUM to Choice Finserv, taking the total AUM to Rs 801.6 crore, including off-book AUM.
The acquisition also aligns with Choice Finserv's commitment to sustainable finance, as the company plans to expand its green finance initiatives, including funding for rooftop solar projects and electric vehicles. The integration will expand Choice Finserv's branch network from 71 to 168 locations across Rajasthan, Gujarat, and Madhya Pradesh, Maharashtra, Uttar Pradesh and Delhi NCR, while growing its workforce from 536 to 1,180 employees. This will strengthen the company's ability to cater to the underserved markets with focused MSME lending and retail loan products.
Choice International offers services in area of project financing, assisting in raising funds by equity or debt routes, debt structuring, private equity, acquisitions, long term strategic planning, turnaround and structuring and joint ventures, divestitures and takeovers.
