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 , a prominent player in the Indian financial services sector, has recently undergone a significant change in its shareholding structure. The company announced the conversion of warrants into equity shares, leading to an increase in its equity share capital and a substantial rise in promoter group holding.

Key Highlights

• Equity Share Capital Increase: Choice International's equity share capital has grown from INR 214.79 crores to INR 222.78 crores.
• Promoter Group Holding: Following the warrant conversion, the promoter group's holding has reached 57.37% of the total voting capital.
• Regulatory Compliance: Soansrishti Properties Private Limited, formerly known as Rupang Properties Private Limited, filed the necessary disclosures under SEBI regulations.

Financial Implications

The warrant conversion and subsequent equity expansion coincide with significant growth in Choice International's balance sheet. Let's look at some key financial metrics:

The company's financial position shows robust growth across key areas, with total assets increasing by 45.03% and total equity growing by 72.71% year-over-year. This strong financial foundation may have supported the decision to convert warrants into equity shares.

Market Implications

The increase in promoter group holding to 57.37% signifies a strong vote of confidence from the company's core stakeholders. This move may be viewed positively by the market for several reasons:

1. Increased Skin in the Game: Higher promoter holding often indicates greater alignment between management and shareholder interests.
2. Long-term Commitment: The conversion of warrants into equity suggests a long-term commitment from the promoter group to the company's growth and success.
3. Potential for Stability: A higher promoter holding can sometimes lead to more stable stock prices, as a significant portion of shares are less likely to be traded frequently.

Conclusion

Choice International's recent warrant conversion marks a significant milestone in the company's capital structure. With an expanded equity base and increased promoter holding, the company appears well-positioned for its next phase of growth. Investors and market watchers will likely keep a close eye on how this change impacts the company's strategic decisions and market performance in the coming months.

As always, investors are advised to conduct their own research and consider their risk appetite before making investment decisions based on these developments.