Choice International to Acquire Stake in Insurance Arm in ₹625 Million Deal

Image Source: PR Newswire

Choice International Ltd has announced a strategic move to consolidate its presence in the insurance sector by acquiring a significant stake in its subsidiary, Choice Insurance Broking India Pvt Ltd, through a deal valued at ₹625 million. The transaction involves the purchase of 660,000 equity shares, signaling the parent company’s confidence in the subsidiary’s growth trajectory.

Key Highlights:

Deal Structure: The acquisition is valued at ₹625 million for 660,000 shares, indicating a premium valuation for the insurance arm.
Strategic Intent: The move is aimed at strengthening Choice International’s footprint in the insurance distribution space, which has seen robust growth amid rising demand for financial protection products.
Business Synergy: The deal is expected to enhance operational integration between the parent and subsidiary, enabling crossselling opportunities and improved customer outreach.
Market Positioning: Choice Insurance Broking has been expanding its reach across India, offering a wide range of life, health, and general insurance products through both digital and offline channels.
Financial Backing: With a strong balance sheet and recent performance gains—Choice International reported 29% YoY revenue growth in Q2 FY25—the company is wellpositioned to fund the acquisition without straining its capital structure.

This acquisition underscores Choice International’s commitment to building a comprehensive financial services ecosystem, with insurance broking emerging as a key pillar of its diversified portfolio.

Sources: Economic Times, Trendlyne, Choice India Blog