Madhusudan Kela-Backed Stock Jumps 9% After South Korean Firm Invests ₹900 Cr in the Company

Synopsis: A financial group’s subsidiary has gained a global investor by issuing preference shares, which has increased its stock price. The ₹900 crore investment will boost the broking division’s finances and help it grow while maintaining management control.

Foreign institutional interest in India’s fast-growing financial services space continues to gather pace, with global players increasingly eyeing homegrown broking and wealth platforms as gateways to the country’s retail investing boom. In a fresh sign of this trend, a well-known market veteran’s portfolio stock caught investor attention after news broke of a large offshore capital commitment into one of its core subsidiaries.

With a market capitalization of approximately Rs. 18,417 crore, the shares of Choice International Limited were trading at around Rs. 836 per share. The stock went up by 9 percent after the announcement. It is trading at a P/E of approximately 84x. Ace investor Madhusudan Kela holds a 7.21% stake in the company, a signal that the company’s growth thesis has attracted attention well beyond retail circles.

The Investment Update 

Choice International informed the exchanges that its material subsidiary, Choice Equity Broking Private Limited (CEBPL), has entered into definitive agreements with South Korea’s NH Investment & Securities Co., Ltd. (NHIS), a leading securities and investment banking firm and a core subsidiary of NH Financial Group, for a strategic capital infusion of ₹900 crore (₹9,000 million). The investment marks a significant milestone for Choice’s broking business and reflects NHIS’s confidence in India’s rapidly expanding capital markets.

Under the agreement, NHIS will subscribe to 42,25,350 Compulsorily Convertible Preference Shares (CCPS) of CEBPL at ₹2,130 per share, including a face value of ₹10 and a premium of ₹2,120. The transaction is subject to statutory and regulatory approvals and is expected to be completed within 12 months. The company clarified that the conversion of CCPS into equity shares will not result in any change in control, with the converted shares ranking pari passu with the existing equity shares.

The proceeds will be deployed as growth capital to strengthen CEBPL’s financial position and accelerate expansion across its broking and wealth management businesses. The company plans to scale its Margin Trading Facility (MTF) book, invest in technology, customer acquisition, talent development, product innovation, and business scalability. 

Backed by the partnership, CEBPL has set a target of achieving 5x growth in its broking and distribution businesses over the next three years, while enhancing its digital capabilities and institutional franchise.

Commenting on the development, Arun Poddar, CEO & Executive Director of Choice International, said the investment validates the company’s long-term vision and business model. He added that NHIS’s institutional expertise, global market insights, and advanced digital capabilities will help Choice drive innovation, enhance customer experience, and expand access to quality financial products.

Shin Jae Wook, President & CEO of NH Investment & Securities, said the partnership strengthens NHIS’s global business portfolio and combines the strengths of both organisations to build sustainable long-term growth engines. NHIS reported FY2025 revenue of KRW 15.36 trillion (₹963.07 billion) and had a market capitalisation of KRW 10.9 trillion (₹683.43 billion) as of June 2026.

About the Investor and Business Overview

Headquartered in Seoul, NH Investment & Securities traces its roots to 1969 and operates as a core subsidiary of NH Financial Group, one of South Korea’s prominent financial conglomerates. 

The firm offers an integrated suite of services spanning securities brokerage, wealth management, investment banking, and capital markets, backed by a workforce of over 3,000 professionals. Its footprint includes more than 57 domestic branches alongside eight overseas offices across major global financial hubs, serving retail, corporate, and institutional clients.

Choice International is a leading integrated financial services platform in India, serving over 1.5 million clients through 217 branches and 67,000+ associates. The company has a strong government advisory business across 20+ States and Union Territories, with an advisory order book of nearly ₹698 crore.

Its NBFC arm manages a loan book of around ₹800 crore, including a retail loan portfolio of ₹575 crore, with a capital adequacy ratio of 45.83% and a low GNPA of 1.86%. The FinX platform processes over 25 million API requests daily and has over 3 million app downloads, enhancing its digital distribution.

 On a consolidated basis, Choice International’s Q4 FY26 revenue from operations stood at ₹306.71 crore, up 21% year-on-year, while total income rose 23% to ₹313.85 crore. EBITDA came in at ₹122.64 crore with a margin of 39.08%, and PAT grew 27% year-on-year to ₹67.84 crore, translating into a PAT margin of 21.62%.

For the full year, FY26 revenue from operations rose 23% to ₹1,119.13 crore, with total income at ₹1,144.50 crore. EBITDA for the year climbed 44% to ₹425.4 crore, while PAT surged 46% to ₹237.89 crore against ₹162.71 crore in FY25.

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