Patodia Properties Creates Pledge on 2.60 Lakh Choice International Shares
Patodia Properties Private Limited has created a pledge on 2,60,000 shares of Choice International Limited as collateral for credit facilities with two NBFCs - Aditya Birla Finance Limited (2,50,000 shares) and SMFG India Credit Co Ltd (10,000 shares). The pledge, created on March 30, 2026, increases the company's total encumbered shares to 77,80,000 (3.49% of total share capital and 91.85% of promoter holding). The security cover ratio stands at 2.78, with the pledge created for promoter's personal use under SEBI Takeover Regulations.
*this image is generated using AI for illustrative purposes only.
Patodia Properties Private Limited has disclosed the creation of a pledge on 2,60,000 shares of Choice International Limited under SEBI Takeover Regulations. The disclosure was made on April 04, 2026, following the pledge creation on March 30, 2026.
Share Pledge Details
The pledge involves shares being used as collateral for credit facilities with two financial institutions:
| Parameter: | Details |
|---|---|
| Total Shares Pledged: | 2,60,000 |
| Percentage of Total Share Capital: | 0.12% |
| Date of Pledge Creation: | March 30, 2026 |
| Purpose: | Collateral for Credit Facility |
Distribution of Pledged Shares
The pledged shares have been distributed between two entities:
- Aditya Birla Finance Limited: 2,50,000 shares
- SMFG India Credit Co Ltd: 10,000 shares
Current Shareholding Position
Following this pledge creation, Patodia Properties' updated shareholding position in Choice International Limited stands as follows:
| Metric: | Before Event | After Event |
|---|---|---|
| Total Shareholding: | 84,70,000 shares (3.80%) | 84,70,000 shares (3.80%) |
| Previously Encumbered: | 75,20,000 shares (3.38%) | - |
| Total Encumbered Shares: | - | 77,80,000 shares (3.49%) |
| Encumbered as % of Promoter Holding: | - | 91.85% |
Security Cover Assessment
The disclosure provides details on the security cover for the pledged shares:
| Parameter: | Amount |
|---|---|
| Value of 2,50,000 shares: | Rs. 16,03,75,000 |
| Amount involved for 2,50,000 shares: | Rs. 6,00,00,000 |
| Value of 10,000 shares: | Rs. 64,15,000 |
| Security cover ratio: | 2.78 |
Regulatory Compliance
The disclosure has been made under Regulation 31(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The document confirms that the encumbered shares represent less than 50% of the promoter shareholding and less than 20% of the total share capital of Choice International Limited.
The pledge has been created for the promoter's personal use to avail credit facilities and is not intended for the benefit of the listed company. Both Aditya Birla Finance Limited and SMFG India Credit Co Ltd are classified as NBFCs (Non-Banking Financial Companies). The disclosure was signed by Suyash Sunil Patodia, Director (DIN: 09489670) of Patodia Properties Private Limited.
Historical Stock Returns for Choice International
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.36% | +10.72% | +7.95% | -12.08% | +39.16% | +832.61% |
Will the high encumbrance ratio of 91.85% of promoter holding impact Choice International's ability to raise capital or attract institutional investors?
How might Choice International's stock price and market perception be affected if Patodia Properties faces difficulty servicing these credit facilities?
Could this pledge creation signal potential liquidity challenges for the promoter group that may lead to further share encumbrances?
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