Patodia Properties Private Limited has filed a disclosure with stock exchanges regarding changes in share encumbrance for Choice International Limited under Regulation 31 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure, dated January 1, 2026, details both the release of existing pledged shares and creation of new encumbrance.

Share Pledge Release and New Encumbrance

The promoter entity executed two significant transactions on December 30, 2025. Patodia Properties released a pledge on 84,70,000 shares representing 3.80% of Choice International's total share capital. These shares were previously encumbered in favor of a clearing corporation.

Simultaneously, the company created a new pledge on 13,00,000 shares (0.58% of total share capital) in favor of Aditya Birla Capital Limited. This new encumbrance serves as collateral for a credit facility.

Financial Structure and Security Cover

The new pledge arrangement demonstrates a conservative approach to collateral management. The encumbered shares carry a market value of ₹106,30,75,000.00 against a loan amount of ₹40,00,00,000.00, providing a security cover ratio of 2.66 times.

Aditya Birla Capital Limited, classified as a Non-Banking Financial Company (NBFC), is the sole entity involved in the new lending arrangement.

Promoter Holdings and Disclosure Compliance

Following these transactions, Patodia Properties maintains its overall shareholding of 84,70,000 shares (3.80%) in Choice International. The total promoter and PAC (Persons Acting in Concert) group holds 12,78,02,292 shares, representing 57.41% of the company's total share capital.

The disclosure indicates that the borrowed amount will be utilized for the promoter's personal use rather than for the benefit of the listed company. This transaction structure ensures clear segregation between promoter financing activities and the listed entity's operations.

Regulatory Framework

The disclosure was filed in compliance with SEBI regulations requiring transparency in promoter share encumbrance activities. Choice International's shares are listed on both BSE and NSE, necessitating simultaneous disclosure to both exchanges. The comprehensive filing includes detailed breakdowns of all promoter and PAC holdings, ensuring complete transparency for market participants and regulatory authorities.

Choice International Limited has issued a formal clarification to stock exchanges regarding the timeline of its SEBI approval for mutual fund business, following queries from BSE and NSE about media reports published on investing.com.

Clarification on Approval Timeline

The company addressed confusion surrounding the publication date of a news article titled "Choice International Gets SEBI's Approval to Set Up MF Business." Choice International confirmed that while the article was referenced as being published on December 29, 2025, it was actually published on December 29, 2024.

Regulatory Compliance

Choice International emphasized its commitment to regulatory compliance by highlighting that both the in-principle approval received on December 26, 2024, and the final approval received on August 1, 2025, were promptly communicated to the stock exchanges as required under regulations.

The company provided specific links to the filings made with both BSE and NSE for each approval stage, demonstrating transparency in its regulatory disclosures.

Company Information

Background Context

The clarification comes as Choice International continues its expansion into the mutual fund business following SEBI's approval. The company had previously announced its entry into the investment management space through 'Choice Mutual Fund,' with Choice AMC Private Limited operating as the Asset Management Company.

This regulatory clarification ensures accurate information is available to investors and stakeholders regarding the timeline of Choice International's mutual fund business approval process.