Choice International Ltd. on Thursday received approval from the Securities Exchange Board of India for the setting up of a mutual fund. The final approval for registration will be granted by SEBI on fulfilment of required speculations.
The company is setting up an asset management company and the trustee company in accordance with the regulations by SEBI and other applicable laws, Choice International said through an exchange filing.
The company in the second quarter of this fiscal reported a 55% jump in net profit at Rs 46.45 crore in comparison to Rs 29.92 crore reported in the same period last year. Its revenue rose 29.6% in the quarter ended September at Rs 247.39 crore.
The company in its investor presentation stated that its broking and distribution segment contributed 64% to the revenue, whereas its advisory segment contributed 26%. The company added that the demat accounts have increased by 21%, whereas the active accounts have seen a 14% rise. The stock broking AUM stood at Rs 43,500 crore with a 40% rise, while the wealth products AUM was at Rs 1,126.7 crore with a 129% rise.
The NBFC segment has contributed only 10% of the revenue. The total loan book fell by 3% due to downsizing of the wholesale loan book. In contrast, the retail loan book rose by 49% to Rs 308 crore. The CRAR stood at Rs 47.31%.
Choice International's stock rose as much as 2.56% during the day to Rs 541.70 apiece on the NSE. The stock closed 1.52% higher at Rs 536.25 per share. This compares with a 0.10% advance in the benchmark Nifty 50. It has risen 144.11% in the last 12 months and 130.57% year-to-date.
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