Choice International proposes 1:1 bonus, Rs 447.80 crore capital

Choice International Limited (Choice International) on November 2, 2026 approved a proposed 1:1 bonus issue, subject to shareholder approval, and a rise in authorised share capital to Rs 447.80 crore from Rs 225 crore. Each eligible holder would receive one new Rs 10 share for every existing Rs 10 share on a record date yet to be announced.

What did Choice International approve on November 2, 2026?

Choice International approved a proposed 1:1 bonus issue of equity shares with a face value of Rs 10 each, subject to shareholder approval. The proposal means one additional Rs 10 equity share for every one existing Rs 10 equity share held on the record date, which the company said it would communicate later.

The board also approved an increase in authorised share capital to Rs 447.80 crore from Rs 225 crore. Its November 2 meeting began at 3:30 p.m. and concluded at 6 p.m., and the filing was made to BSE and NSE under Regulation 30 of the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations, 2015.

Choice International approved the draft notice for its first Extraordinary General Meeting, or EGM, for financial year 2026-27. The proposed EGM agenda includes the authorised-capital increase, an amendment to the capital clause of the Memorandum of Association and the bonus-share issuance; the filing does not give an EGM date.

The board meeting also approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026, following the Audit Committee’s recommendation. The board noted the auditor’s limited review report, but the results announcement does not provide a bonus allotment date, ex-date or entitlement date.

How would Choice International’s 1:1 bonus issue work?

Choice International’s proposed 1:1 ratio would give an eligible shareholder one new equity share for each existing equity share held on the eventual record date. For example, a holder of 100 eligible shares would receive 100 additional shares, resulting in a holding of 200 shares after allotment, subject to the stated shareholder approval.

The new shares and existing shares each have a face value of Rs 10 under the proposal. The filing describes the transaction as a bonus issue and does not identify a cash payment to shareholders, a revised face value, or a separate class of securities.

Choice International has not set the record date that will establish eligibility. It said the date would be intimated in due course, so the November 2 filing does not establish which shareholders qualify or the final number of shares that will be allotted.

The company reported paid-up equity share capital of Rs 222.78 crore at September 30, 2026, unchanged from March 31, 2026. The filing does not state the amount that would be capitalised from reserves for the bonus issue, although it reports reserves excluding revaluation reserve of Rs 1,700.99 crore at September 30, compared with Rs 1,413.09 crore at March 31, 2026.

Why is Choice International increasing authorised share capital?

Choice International is seeking an increase of Rs 222.80 crore in authorised share capital, taking the ceiling to Rs 447.80 crore from Rs 225 crore. The board linked the proposed increase to the bonus issue and approved a consequential amendment to the capital clause of its Memorandum of Association.

The existing authorised capital consists of 22.50 crore equity shares with a face value of Rs 10 each. Under the proposed revised limit, authorised capacity would rise to 44.78 crore Rs 10 equity shares, an increase of 22.28 crore shares.

Authorised share capital is distinct from the paid-up equity share capital of Rs 222.78 crore reported at September 30, 2026. The proposed authorised ceiling of Rs 447.80 crore would provide capacity above the reported paid-up amount, but the increase and the bonus issue remain subject to the shareholder approvals identified in the filing.

The November 2 disclosure does not state the source of capitalisation for the bonus shares or specify the final number of shares to be issued. It also does not disclose a timetable between the EGM approval, the record-date announcement and the allotment of shares.

What do Choice International’s latest financial results show?

Choice International reported unaudited consolidated revenue from operations of Rs 372.87 crore for the quarter ended September 30, 2026, compared with Rs 274.43 crore in the quarter ended September 30, 2025. Consolidated profit for the period rose to Rs 69.47 crore from Rs 56.46 crore in the year-earlier quarter.

Compared with the immediately preceding quarter ended June 30, 2026, revenue from operations increased from Rs 309.79 crore to Rs 372.87 crore. Consolidated profit for the period increased from Rs 60.61 crore in the June quarter to Rs 69.47 crore in the September quarter.

For the half year ended September 30, 2026, Choice International reported consolidated revenue from operations of Rs 682.65 crore, against Rs 509.06 crore in the corresponding period a year earlier. Consolidated profit for the period was Rs 130.08 crore, compared with Rs 104.42 crore, while profit attributable to owners rose to Rs 122.32 crore from Rs 100.22 crore.

The September 30, 2026 consolidated balance sheet showed total assets of Rs 4,142.78 crore, compared with Rs 3,572.05 crore at March 31, 2026. Current loans increased to Rs 1,153.47 crore from Rs 943.53 crore, while current borrowings increased to Rs 1,104.83 crore from Rs 481.38 crore over the same period.

Cash and cash equivalents stood at Rs 320.49 crore at September 30, 2026, compared with Rs 319.95 crore at March 31, 2026. For the half year, net cash used in operating activities was Rs 281.18 crore, while financing activities generated Rs 249.63 crore and investing activities generated Rs 32.10 crore.

Conclusion

Choice International has proposed two connected capital actions: a 1:1 bonus issue and an increase in authorised share capital from Rs 225 crore to Rs 447.80 crore. The proposed authorised capacity would rise from 22.50 crore to 44.78 crore equity shares of Rs 10 each, while the company reported paid-up equity share capital of Rs 222.78 crore at September 30, 2026.

The next disclosed steps are shareholder consideration at the first EGM of financial year 2026-27 and Choice International’s later communication of the bonus record date. The November 2, 2026 filing does not specify the EGM date, record date, allotment date, capitalisation amount or final bonus-share count.