Intimation of acquisition of stake in Choice AMC Private Limited
CHOICEIN · price
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Choice International Limited has acquired the entire 100% stake in Choice AMC Private Limited, making it a wholly owned subsidiary. The company acquired 61.10 lakh equity shares at Rs. 10 each (Rs. 6.11 crore) from its existing wholly owned subsidiary Choice Equity Broking, and additionally infused capital by subscribing to 5 crore fresh shares at Rs. 10 each (Rs. 50 crore), taking total consideration to about Rs. 56.11 crore. The acquisition is part of setting up a mutual fund, for which SEBI had given in-principle approval in December 2024, and Choice AMC (formerly Choice Portfolio Management Services) will act as the asset management company. Choice AMC had a turnover of Rs. 60.15 lakhs in FY24 and net worth of Rs. 535.09 lakhs as of March 31, 2024.
This is a strategic step that moves Choice International closer to launching its own mutual fund, a potential new revenue stream. The Rs. 50 crore capital infusion strengthens the AMC's net worth to meet SEBI's mutual fund requirements. Shareholders should view this positively as it expands the company's financial services footprint, though the AMC is currently small in terms of revenue.