Choice receives Rs 900 crore in completed NHIS CCPS deal

Choice International completed a Rs 900 crore primary capital infusion into Choice Equity Broking Private Limited from NH Investment & Securities Co., Ltd. on 27 October 2026 through compulsory convertible preference shares (CCPS). Choice said the proceeds are intended for margin-trading funding, settlement finance, working capital, capital expenditure, acquisitions, and broking and wealth-management growth.

What did Choice receive from NHIS?

Choice received Rs 900 crore from NH Investment & Securities Co., Ltd., identified in the presentation as NHIS, through a primary issuance of CCPS in Choice Equity Broking on 27 October 2026. The presentation describes the transaction as completed and says the full Rs 900 crore was received on that date.

The investee is Choice Equity Broking and the investor is NHIS, while CCPS are the stated transaction instrument. The presentation does not disclose the number of CCPS issued, conversion price, conversion ratio, valuation, ownership stake, conversion date or governance rights associated with the securities.

Because the transaction is described as a primary capital infusion, the stated Rs 900 crore is intended for Choice Equity Broking rather than an existing shareholder selling securities. The company identifies operating funding, acquisitions and expansion across broking and wealth management as the uses for the capital received on 27 October 2026.

How will Choice deploy the Rs 900 crore infusion?

Choice plans to use the Rs 900 crore to expand its margin-trading facility, or MTF, book and settlement-funding portfolio. Its MTF book was Rs 463.4 crore in Q2 FY27, up 42% year on year, making this a specifically identified area for deployment.

The stated uses also include working capital, capital expenditure and strategic acquisitions. Choice does not provide an allocation between MTF funding, settlement finance, working capital, capital expenditure, acquisitions or growth initiatives, and it does not identify acquisition targets or a timetable for completing acquisitions.

Broking and wealth management are the other named growth areas. In Q2 FY27, Choice reported Rs 6,047.1 crore of wealth-products assets under management, or AUM, up 26% year on year, alongside Rs 3,013.4 crore of equity mutual-fund AUM, up 49% year on year.

What is Choice's broking and wealth platform today?

Choice had 13.79 lakh demat accounts in Q2 FY27, up 14% year on year, and more than 2.42 lakh active accounts. Demat accounts increased by 1.74 lakh from 12.05 lakh in Q2 FY26 to 13.79 lakh in Q2 FY27.

Broking and distribution, including wealth products and insurance, generated Rs 178.2 crore of Q2 FY27 segment revenue. This was 11% above Rs 160.7 crore in Q2 FY26 and Rs 5.9 crore above Rs 172.3 crore in Q1 FY27; the segment represented 55% of H1 FY27 revenue, compared with 32% for advisory and 12% for the non-banking financial company, or NBFC, segment.

Choice reported retail average daily turnover, or ADTO, of Rs 1,598.9 crore in Q2 FY27, compared with Rs 1,801.9 crore in Q1 FY27. Retail ADTO market share nevertheless rose to 1.54% as of 30 September 2026 from 1.45% in Q1 FY27, showing lower sequential turnover alongside higher reported market share.

The client base had 69% of clients in Tier III and below locations, 25% in Tier II and 6% in Tier I locations in Q2 FY27. Choice also reported that 52% of clients were aged 35 or below, online channels supplied 70% of revenue, and its mobile app had more than 3.30 million downloads.

How did Choice perform before the completed transaction?

Choice reported Q2 FY27 revenue of Rs 379 crore, up 33% year on year from Rs 284.1 crore in Q2 FY26. Revenue was also Rs 60 crore higher than Rs 319 crore in Q1 FY27, while the presentation reported a 48% compound annual growth rate from Q2 FY23 to Q2 FY27.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, reached Rs 130.6 crore in Q2 FY27, up 32% from Rs 99 crore in Q2 FY26. Profit after tax, or PAT, was Rs 69.5 crore, 23% above Rs 56.5 crore a year earlier and Rs 8.9 crore above Rs 60.6 crore in Q1 FY27.

Choice also reported an NBFC total loan book of Rs 936 crore in Q2 FY27, including a Rs 609 crore retail loan book. Its advisory business operated across more than 24 states and Union Territories, with a Rs 710 crore order book, 24 ongoing initial public offering mandates and Rs 6,210 crore of tentative fund raising.

What does NHIS add to the Choice partnership?

NHIS has listed activities in Seoul, New York, London, Hanoi, Singapore, Jakarta, Beijing, Shanghai and Hong Kong. The presentation identifies local brokerage in Vietnam and Indonesia, global product sourcing in New York, London, Singapore and Hong Kong, and investment-banking or private-investment activities in several locations.

The presentation also lists NHIS's Global Equity Trading platform in New York and Hong Kong, fixed-income sales and trading in Hong Kong, hedge-fund sourcing and management in Singapore, and research and deal support in Shanghai. These disclosures describe NHIS's stated operations but do not specify a commercial arrangement, product launch, client-sharing agreement or revenue target for Choice.

For Choice, the completed Rs 900 crore infusion combines new primary capital with an investor whose stated activities include brokerage, investment banking, global product sourcing and alternative-investment management. The transaction disclosure does not set milestones or a schedule for operational integration between Choice and NHIS.

Conclusion

The completed CCPS transaction gives Choice Equity Broking Rs 900 crore of primary capital while Choice reported Q2 FY27 revenue of Rs 379 crore, PAT of Rs 69.5 crore and an MTF book of Rs 463.4 crore. The disclosed uses connect the capital with margin funding, settlement finance, operational needs, acquisitions, and expansion in broking and wealth management.

The next matters to watch are Choice's allocation of the Rs 900 crore among MTF funding, settlement finance, working capital, capital expenditure, acquisitions and growth initiatives. The presentation leaves the CCPS conversion terms, resulting ownership effect, allocation amounts, acquisition plans and execution timetable unresolved after the 27 October 2026 completion date.